By Rachel Greszler – Re-Blogged From Blabber Buzz
House Democrats are looking to double the minimum wage, with little eye to the consequences.
Led by Virginia Democrat Bobby Scott, House Democrats introduced the Raise the Wage Act, which would more than double the federal minimum wage from $7.25 to $15 per hour by the year 2024.
By Kaylee McGhee – Re-Blogged From Liberty Headlines
‘Each $1 increase in the minimum wage has…increased poverty rates and the receipt of public assistance…’
(Kaylee McGhee, Liberty Headlines) Anti-poverty initiatives, like higher minimum wage laws and heftier welfare programs, have actually hurt poor and disadvantaged communities, according to a new studyby the Employment Policies Institute.
University of California, Irvine economists David Neumark and Brittany Bass, and Brian Asquith of the National Bureau of Economic Research, studied the long-term effects of these programs in struggling neighborhoods, looking at how minimum wage and welfare policies have impacted poverty rates over the past three decades.
They found that rather than improving impoverished communities — as they are designed to do — these policies have hurt poor areas.
“Neither a higher minimum wage nor more-generous welfare benefits have reduced poverty rates in the country’s most-disadvantaged neighborhoods. In fact, the authors find some evidence that poverty rates and the share of residents on public assistance have increased alongside a rising minimum wage,” the study reads.
The researchers said they found that the most common long-term outcome of higher welfare benefits was increased poverty and a higher number of people receiving public assistance.
“To put this in practical terms, it means that each $1 increase in the minimum wage has, in disadvantaged neighborhoods over the past three decades, increased poverty rates and the receipt of public assistance by roughly three percent,” the researchers wrote.
This study raises important questions about the effectiveness of the poverty-reduction programs leftist politicos tout.
“These findings cast serious doubt on whether the normal poverty-reduction policies — minimum wages and welfare programs — actually contribute to increased employment, reduced poverty, and higher household earnings,” the EPI wrote. “Indeed, this study should give pause to any level of government interested continuing or expanding such policies.”
By John Rubino – Re-Blogged From Dollar Collapse
In interviews, whenever I try to make the case that US policies are leading to the kinds of currency disruptions common in developing countries, I say something like, “For a glimpse of America’s future, take a look at Argentina, where they’re eating cats and dogs because of hyperinflation … wait, no, I meant Venezuela.”
Mixing up countries kind of dilutes the power of the statement, but for some reason I can’t seem to help it.
Ontario just bumped its minimum wage to $14 per hour, but it is working families and consumers that will suffer.
A newly released study from the Bank of Canada suggests the Canadian province will lose some 60,000 jobs by 2019 as a result of the hike, the National Post reported. And local businesses are making other cuts, too.
Congressional Quarterly/Getty Images
A newly released longitudinal study on the effects of the rising minimum wage in California reveals it negatively affects low-income workers.
“[A]pproximately 400,000 jobs would be lost” by 2022 “as a consequence” of California gradually imposing the first statewide $15 minimum wage, according to a study from the Employment Policies Institute, a conservative nonprofit research organization. “This estimate is conservative, as it measures the impact of California’s state minimum wage but does not account for job loss in counties that had insufficient data.”