Following the state of New York’s decision to approve a new $15 minimum wage for all fast food workers, a report from the American Action Forum (AAF) has stated that a rise even to $12 per hour would result in the loss of jobs and would actually inflict financial harm to the very poor. Using data derived from Meers & West (Texas A&M economists who carried out a study entitled “Effects of the Minimum Wage on Employment Dynamics” 2015), the AAF found that if a $12 per hour minimum wage were introduced, 4 million jobs would be lost. Furthermore, only 5.8% of all income gained by the introduction would physically assist those families in poverty. In fact, 40.5% would go to families with an income of 1 to 3 times the poverty threshold, 40.1% would go to families with an income of 3 to 6 times the threshold, and 13.7% would go to families with an income more than 6 times the threshold.
Should a $15 per hour minimum wage be applied to an identical Meer & West scenario, a massive 6.6 million jobs would be lost. Additionally, only 6.7% of the income gained would go to families below the threshold (42.6 % would go to families with an income of 1 to 3 times the poverty threshold, 36.1% would go to families with an income of 3 to 6 times the threshold, and 14.7% would go to families with an income more than 6 times the threshold).
Evidence is beginning to grow which suggests the so-called “progressive” nature of this government will simply lead to further economic problems down the line. If you agree, please Like & Share this post.
