Seattle, with the highest minimum wage in the nation, is losing low-level jobs and reducing wages for low-skilled workers.
Entry-level jobs in fast food restaurants were never meant to be careers or living wage jobs. They were jobs for college kids. They have also served as stepping stones for management positions. The left is set on making them into careers for their special interest groups.
The Progressive left can’t accept a basic economic concept: raising the price of goods with higher wages diminishes demand and jobs.
Shannon Bream discussed a new study of Seattle’s $15 minimum wage with correspondent Dan Springer. The results won’t make the left happy.
The study shows it is not improving the lives of low income workers. It has the opposite effect. It’s costing jobs and lowering wages overall for low-skilled workers.
The study concentrated on the fast food restaurant business.
Springer summarized the results
“The study that just came out today shows that Seattle’s minimum wage law has cost the city roughly 5,000 low wage jobs. And not only that, low-skilled workers are actually taking home less money because employers have cut the hours that they give out.”
“This is a big blow to labor groups and all those who’ve been pushing this $15 an hour agenda,” Springer said.
“They have had a lot of success in recent years with new wage laws passing in several cities and counties. The promise is always the same; a high minimum wage is more fair and will put more money in the pockets of people who need it most.”
“But this study done by the researchers at the University of Washington found that when the minimum wage jumped from $11 to $13 employers cut hours by 9 percent. Wages for those making less than $19 an hour did go up 3 percent but by working less those employees actually took home, get this, $125 less per month.”