http://www.epi.org/blog/14-states-r...ages-of-more-than-4-6-million-working-people/
Liberal policies in action- directly impacting the pocketbooks of the people that end up spending every dime they earn, pretty much. And because it is spent in the local economy, that money gets passed around. It doesn't go in the pockets of poor people and stay there. The money ends up in the hands of businessmen and tax collectors. It all goes right back in the pockets of the rich. It simply also makes poor people's lives better before it does.
Now, watch the employment rate. Are any of these states facing a sudden economic downturn? No? Unemployment is steadily dropping. How about jobs? Number of jobs and employed persons dropping? No? How about Wall Street. Are people suddenly unable to become filthy rich? No? Highest it's ever been?
Hmm. Seems like people who don't drink the Tim Worstall kool-aid know what they're doing.
Gotta love the big rant comment at the end of that article.
"They're for high school students with no skills or financial obligations as well as retirees and stay-at-home moms who just want to keep busy and earn a little extra money. People shouldn't expect to be able to support a family out of wages from these jobs."
Then you look at the table and see it ranges from like 3 percent to over 18 percent, on average about 10 percent of each state getting impacted by it.
It's only 1 in 10 workers or more. No big deal. It doesn't help anyone.
I also find it very curious how the myth persists of the person who has no financial obligations who works at these jobs makes up any significant percentage of the workforce. Having worked dozens of jobs in several states over the past 20 years, I have run across maybe 10 people out of 1000 that had the job, but only did it to get out of the house and keep busy. A comparable amount of "high school students" as well. Everyone I knew was working full time.
Gotta love the contradiction of the "stay at home mom" who also works just to "earn a little extra money". It earns so little that you spend over half of it on a babysitter and the rest goes to a second vehicle that you then have to maintain. There were moms working those jobs, though, because the fathers of their children were earning minimum wage and required a second income to support that family. In the 1970s the wage was enough to sustain a family, as of now it isn't enough to sustain a single person in a 1 bedroom apartment.
There were precisely zero "moms" that worked just for the fun of it, or to earn a little extra spending money. 100% of them relied upon that money to pay for rent and food. Most of them required government services in order to make ends meet.
You'll note that the rising wages did not harm job creation.
https://upload.wikimedia.org/wikipedia/commons/5/5f/History_of_US_federal_minimum_wage_increases.svg
You'll also note that the history of the United States is one where the minimum wage rises periodically to stem inflation and to raise the standard of living for the workers who are always producing more, and more efficiently, and making the US richer than any other country, despite being not even close to the most populated.
That history is based on a premise that a person can work a job and therefore earn enough to pay for their own needs. It's not a complex idea.
A new religion is spreading throughout the conservative thought universe, which upends the established fact of what the wage floor does. They decry it as unnecessary and actually something that impedes growth, citing dogma rather than evidence to make that argument. The actual facts of what happens can be found. Not just within a state, but between states, and even outside of the United States. This is something you can study empirically. But the new religion is that prices on everything BUT labor can rise, but wages should remain stagnant or be lowered even further, because demand is caused by suppliers saving 35 cents on labor on a 10 dollar pizza, while 20 percent of the population (and rising) can no longer afford to eat a pizza because their wages don't even touch their necessary expenses.
This doesn't work in the real world.
In the real world, shrinking real wages causes demand to disappear. If you work near the wage floor, as a large percentage of the population does, you no longer take trips, see movies, or make frivolous purchases. In turn, you have a rising pool of employed persons, but less people shopping at the mall, and more people shopping at Wal-mart. Demand decreases.
It's not even hard to model why that is in your head. If you make 1200 per month in wages, and spend 1100 a month on necessary expenses, you aren't spending tons of money in the local economy. You are employed, but you're not moving the economy. If your wages were to rise by 100-200 per month, your investment in the local economy triples.
If you make 15000 per month, and suddenly save 2000 extra dollars a month in taxes, you do not go out and spend that extra 2000 a month and put it back into the economy. And if you're running a pizza joint that is not experiencing higher demand, because the only people earning more money in this economy is the top 1 percent, and everyone else is cutting back due to their chicken feed wages, then you don't take that 2000 a month and hire another person. There's no demand for it. It stays in your pocket.
You spend the 2000 a month on another worker if and only if there's a demand for at least 4000 more dollars worth of your product per month at that location. A thing which will never occur if wages are stagnant. People don't suddenly have a mountain of extra money out there for no reason. And employers don't employ people as a charity. They only do it when there's enough demand.
And if the minimum wage does go up, the employers don't pay the difference. They always raise the prices and pass on the expense. No one will lose a job if demand stays the same. And no one stops ordering pizza if the price is now $10.50 instead of $10, reflecting the extra 5 percent in labor costs of a minimum wage increase. Mostly because everyone else's wages also rise after that. So a 20 percent wage increase for the poor translated into a 5 percent rise in prices, which also translated into people earning more than the minimum also getting a wage bump, until it goes high enough up the income ladder that no one noticed the difference. If anything, demand increased, and all that money went back into the local economy. As opposed to what happens when the Waltons get to keep several million more dollars apiece when there's a tax cut, and it just sits there, far, far away from the local economies of the stores they own, creating no new jobs, and no higher incomes.
Not difficult to follow why that is. Because they have no interest in creating new jobs or higher incomes. It's not their responsibility. It's ours. We're a self-governing people.
What creates demand, jobs, and better incomes, is a well-funded and efficient system that provides needed services, and guarantees a livable starting wage. That is what exists in every liberal state. Those states do very well, population wise, and job wise, and pay into the federal government as opposed to leeching from it like the red states do. But all of this involves critical thinking and looking at data, and not swallowing Breitbart's garbage every day as if it were the gospel. The rich do own the media, and they pay Tim Worstall to type up several articles a week on why the minimum wage is bad for workers.
The problem is, some of us are dull-witted and uncritical enough to believe it.