Friday, July 17, 2015

Proof: Raising the Minimum Wage Doesn't Raise Overall Wages

Many Democrats believe that raising the minimum wage will help improve salaries for everyone.  In fact, a year ago last March, President Obama went to Connecticut where he gave his speech focusing in on the minimum wage called "It's Time To Give America A Raise". Note that he said give "America" a raise and not just the lowest paid workers.

Well, this year, 29 states followed the President's suggestion and they now have a minimum wage above the Federal level of $7.25.

So, this begs the question: Did America get a raise? Not based on the last jobs report.

In the last three months, the average hourly wage went up a whole 6 cents from April's $24.89 to $24.95 in June.  In fact, June's wage remained the same as May's.  When annualized, this is a 1% increase. That's a rate that is half the normal 2% growth that this country has seen since the end of the recession, and a third to a fourth of the normal wage growth before the recession and before the 40% hike to the current $7.25 in the years 2007 to 2009 (see data link below).

What liberals and the President don't seem to understand is that raising the minimum wage actually has a negative impact on other, non-minimum-wage earners.  Forcing an employer to pay a higher minimum just puts the employer in the position of not being able to hand out normal raises.  Thus, other employees are being punished by this government action by lawmakers who, generally, never ran a business and don't seem to understand how they must struggle whenever higher wages are thrust upon them.


President Obama: It's Time To Give America A Raise:

The Minimum Wage By State in 2015:

June's Employment Report - Table B:

Year-Over-Year Wage Growth Since 2007:

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