May 23, 2015

Liberals in LA Vote to Raise Minimum Wage, Immediately This Happens…

Liberals on the Los Angeles City Council have voted to raise the minimum wage in that city to $15 an hour and businesses are responding by investing in automation so workers will not be required to the same degree.
How many times does it have to be proven that raising the minimum wage kills jobs, hurts the poor the most, and increases prices for all consumers?
Even worse, once prices rise the minimum wage worker is no better off financially than before, if they still have a job.
On Tuesday, the Los Angeles City Council passed a minimum wage law by a 14-to-1 vote margin that continually cranks-up wages for the next five years to $15 an hour. Meanwhile, employers are responding by investing in machines over people.
Four in 10 employers surveyed in the eighth annual poll by the Los Angeles County Business Federation say they expect to hire more people this year, up 10 percent over last year. But the numbers of employers that say they intend to make the type of capital investments that eliminate jobs through automation doubled, to 59 percent…

Due to anti-business burdens and costs, the City of Los Angeles won the booby-prize last year as America’s Poorest Big City, according to an analysis by the American Community Survey-based Census Bureau data. L.A.’s poverty rate of 17.6 percent made California the top poverty state overall, with a 16.8 percent rate.
Poll participants named Burbank and Long Beach as the most business-friendly cities in the county, followed by Glendale, El Segundo and Santa Clarita. Los Angeles was named by far the least friendly, with the People’s Republic of Santa Monica a close second-worst.
More from Thomas Sowell:
A survey of American economists found that 90 percent of them regarded minimum wage laws as increasing the rate of unemployment among low-skilled workers. Inexperience is often the problem. Only about two percent of Americans over the age of 24 earned the minimum wage.

Advocates of minimum wage laws usually base their support of such laws on their estimate of how much a worker “needs” in order to have “a living wage” — or on some other criterion that pays little or no attention to the worker’s skill level, experience or general productivity. So it is hardly surprising that minimum wage laws set wages that price many a young worker out of a job.
What is surprising is that, despite an accumulation of evidence over the years of the devastating effects of minimum wage laws on black teenage unemployment rates, members of the Congressional Black Caucus continue to vote for such laws.

1 comment:

  1. It doesn't matter what the raise in minimum wages do, its only important how it appears to the constituent voters.