One of the promises the Marxist/Progressives will try to keep is their promise to raise the minimum wage; they do this not because it benefits people or the economy, but because it is one way of fulfilling their commitment to fundamentally transform the United States. We know raising the minimum wage is most detrimental to those who supposedly it is intended to help. The only way to truly wage incomes and living standards for all is by a robust capitalist economy where the market place dictates wages through creating more jobs than we have workers. This does not fit the scenario of the Marxist/Progressives, so they continue to push for the policies that prevent true economic growth. They prefer government interference and regulation including raising minimum wages. Here is the real true story behind these damaging controls.
Raising the minimum wage, a stated goal of the Obama administration, likely would cost jobs and hurt low-income workers.
University of California San Diego economic researchers discovered that the federal minimum wage increase from $5.15 to $7.25 per hour between 2007 and 2009 actually cost the economy 1.4 million jobs, Breitbart News reports.
Even worse, the increase's negative effect landed squarely on the people it was designed to help — low-paid, unskilled workers, who found themselves blocked out of low-paid or internship positions that would give them a shot at gaining experience and achieving higher-paid jobs, the study notes.
"We find that binding minimum wage increases significantly reduced the likelihood that low-skilled workers rose to what we characterize as lower middle class earnings. This curtailment of transitions into lower middle class earnings began to emerge roughly one year following initial declines in low wage employment. Reductions in upward mobility thus appear to follow reductions in access to opportunities for accumulating work experience," the report states.
"While the wage distribution of low-skilled workers shifts as intended, the estimated effects on employment, income, and income growth are negative.
"We infer from our employment estimates that minimum wage increases reduced the national employment-to-population ratio by 0.7 percentage points between December, 2006, and December, 2012. This accounts for 14 percent of the national decline in the employment-to-population ratio over this period," the study's authors, Jeffrey Clemens and Michael Wither, state.
Breitbart noted that the Service Employees International Union has protested nationally, seeking an increase in the minimum wage, and Obama favors a 40 percent increase in the federal minimum wage to $10 per hour.
"The new research should give well-intentioned legislators pause before entertaining bills that would ultimately hurt low-skilled workers," Breitbart said