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Posts Tagged ‘Minimum Wage’

Sorry Folks, Raising The Minimum Wage Does Increase Unemployment

OK, so this evidence is from the US but it is pretty conclusive:

minimum wage


The Congressional Budget Office has cranked through the numbers for the proposed rise in the US minimum wage and it appears that it will put 500,000 people out of work.

Once fully implemented in the second half of 2016, the $10.10 option would reduce total employment by about 500,000 workers, or 0.3 percent, CBO projects. As with any such estimates, however, the actual losses could be smaller or larger; in CBO’s assessment, there is about a two-thirds chance that the effect would be in the range between a very slight reduction in employment and a reduction in employment of 1.0 million workers.

The increased earnings for low-wage workers resulting from the higher minimum wage would total $31 billion, by CBO’s estimate. However, those earnings would not go only to low-income families, because many low-wage workers are not members of low-income families. Just 19 percent of the $31 billion would accrue to families with earnings below the poverty threshold, whereas 29 percent would accrue to families earning more than three times the poverty threshold, CBO estimates. Moreover, the increased earnings for some workers would be accompanied by reductions in real (inflation-adjusted) income for the people who became jobless because of the minimum-wage increase, for business owners, and for consumers facing higher prices.

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Posted: 19th, February 2014 | In: Money | Comment | Comments RSS feed:RSS 2.0

It goes down: that’s what the minimum wage is supposed to do you dimbulb idiot

DEAR Heaven above wouldn’t it be nice to be ruled by people of a slightly higher intellectual capacity than this? Here we’ve got the ex-head of the organisation that sets the minimum wage, The Low Pay Commission, complaining about the rate at which the minimum wage is being set.

The national minimum wage is no longer working because its value has fallen, one of its key architects said as a new study showed it could be worth less in 2017 than it was in 2004.

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Posted: 30th, July 2013 | In: Money | Comment | Comments RSS feed:RSS 2.0

How to prove that the minimum wage destroys jobs


I KNOW, I know, we’re forever told that the minimum wage doesn’t in fact destroy jobs. It’s a lovely cuddly policy that has absolutely no bad effects at all. Except, if we consider Amazon’s Mechanical Turk marketplace this simply cannot be correct.

Estimates of what workers can earn on these crowdsourced tasks range from about $1.20 to $5 an hour without any benefits. Employers treat them as independent contractors not covered by federal minimum-wage legislation.

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Posted: 10th, April 2013 | In: Money | Comments (2) | Comments RSS feed:RSS 2.0