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Most of the large swath of economic studies on the minimum wage from the 50s to the 80s confirmed that increases in the minimum wage do cause unemployment with a few exceptions.
Marijuana legalization news in the us. Raising the minimum wage has become the cause celebre for many on the progressive left. Minimum wage rates. The united states federal government set the national minimum wage rate at 725 per hour in july 2009.
Raising the minimum wage and demand deficit unemployment. Demand deficit unemployment sometimes occurs when wages are too high. Thats one of the arguments against higher minimum wages.
The general public has generally been pretty ignorant. But many states have minimum wage rates that are much higher with the. In addition those found to be hurt the most by increases in the minimum wage were those who needed these jobs the most such as teens and minority groups.
Most notably seattle has passed a 15 per hour minimum wagein addition california lawmakers are trying to pass a state wide 13 per hour minimum wage and president obama is supporting the increase of the federal minimum wage from 725 to 1010. The minimum wage has been a political issue since its inception in the 1930s. Unemployment rose sharply in the early 1980s pipping over 5 percent in 1983 after three years without any increase to the minimum wage.
Critics argue that when businesses are forced to pay a higher salary per person they must let other workers go. Obviously therefore a rise in wage costs of four or five times that is going to have significant unemployment effects.
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