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IPFS News Link • Minimum Wage

St. Louis Just Hiked Minimum Wage By 43%;

• zerohedge.com by Tyler Durden

Seemingly no amount of empirical evidence will ever convince progressives that raising minimum wages to artificially elevated levels is a bad idea.  Somehow the basic idea that raising the cost of a good ultimately results in lower consumption of that good just doesn't compute. 

And while roughly 50% of the country will promptly ignore it, below is yet another study, from Dr. David Macpherson of Trinity University and Dr. William Even or Miami University, pointing out the devastating consequences of minimum wage hikes.

This study takes a look at the city of St. Louis and its decision to hike minimum wage rates 43% by 2018 from $7.70 per hour to $11.00.  Macpherson figures such a hike will cost the city roughly 1,000 jobs and, as usual, will hurt the "young and less-skilled" workers the most.

Minimum wage proponents in the city have portrayed the proposed increase as a no-lose proposition. The labor union funded group Missouri Jobs With Justice has even suggested a minimum wage hike would help local businesses and the economy. But a wide body of economic research, including a 2014 Congressional Budget Office (CBO) report, concludes that minimum wage hikes reduce job opportunities especially for the young and less-skilled.


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