This article was published by The McAlvany Intelligence Advisor on Wednesday, January 3, 2018: 

According to Mic, the left-wing internet and media company that caters to millennials, Seattle “is quickly becoming one of the most interesting cities in the country for political observers.” The city boasts having an avowed socialist on its city council and proved his influence through its $4.8 billion budget in 2014 that is “loaded with a number of initiatives that illustrate how Seattle is making strides toward becoming a testing ground for boldly policies.”

That salute to Seattle’s progressivism was published in 2014, and little has changed in the city council’s . It now boasts a minimum of $15.45 an hour, with predictable effects: total wages paid to lower-income people has gone down, not up. A study just released by the National Bureau of Economic Research (NBER) explained:

This paper evaluates the wage, employment, and hours effects of the first and second phase-in of the Seattle Ordinance, which raised the from $9.47 to as much as $11 per hour in 2015 and to as much as $13 per hour in 2016.

 

Using a variety of methods to analyze employment in all sectors paying below a specified real hourly rate, we conclude that the second wage increase to $13 reduced hours worked in low-wage by around 9 percent, while hourly wages in such increased by around 3 percent.

 

Consequently, total payroll fell for such jobs, implying that the minimum wage ordinance lowered low-wage employees’ earnings by an average of $125 per month in 2016. (emphasis added)

Put another way: the higher the minimum wage mandated by union-controlled politicians (the Fight for 15 campaign is spearheaded by the Service Employees International Union) and air-headed progressives like those on Seattle’s city council, the less those lower paid people are being paid.

Politicians in 18 states know they are dealing with deadly Nightshade when they pass, or allow to pass, minimum wage . They know that administered in strong doses it will kill small businesses, so instead it is gradually insinuated into the over time. That’s why such laws are called “progressive.”

Through new legislation, successful ballot measures, or inflation adjustments built in to previous statutes, some 4.5 million people should see increases in their paychecks in the New Year. Ten of those states – Maine, Vermont, Washington, Michigan, New York, Rhode Island, California, Colorado, Arizona, and Hawaii – are seeing increases as the result of legislative or ballot measures. The other eight – Alaska, Florida, Minnesota, Missouri, Montana, New Jersey, Ohio, and South Dakota – will see so-called “automatic” increases in their minimum wage laws in 2018.

Most new minimum wage legislation is phased in through gradual increases, declaring boldly the hypocritical claim that such increases won’t affect employment. It’s like feeding Nightshade to a victim in such small doses that he doesn’t even notice – until he’s dead.

Most statist economists who try to justify minimum wage laws forget to mention the best (worst) example of just how they kill jobs. Writing for the Mises Institute, scholar/historian Chris Calton noted:

By the 1960s, many African-Americans were employed as farmers — at least partly due to this being one of the few remaining fields of work that was not yet subject to wage regulations. This changed in 1967, when the government extended the minimum wage laws to American farmers as part of the “War on Poverty.” Black farmers who were accustomed to making a modest $3.50 per day were now legally required to be paid $1.00 per hour — a tremendous increase in wages.

 

The effect of this law was immediate and undeniable. An estimated 25,000 farm workers were put out of work in the Mississippi Delta region alone … the federal minimum wage destroyed their ability to earn a living….

 

Black migration out of these farmlands occurred by the thousands; the New York Timesin 1968 called it the “Negro Exodus.”

The staged-in minimum wage increases scheduled for 2018 declare loudly the of those laws that claim to be necessary for the improvement of peoples’ standard of living. If the increases were applied all at once rather than a drop at a time, the victim – business owners who employ people – would simply close up shop and move away to friendlier and more enlightened climes. After all, 32 states didn’t raise their minimum wages in 2018.

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Sources:

Mic.comSeattle Is Doing What No Other City in America Has Done    published November 2014

Background on Mic

Background on the deadly poisonous plant Nightshade

Huffington PostMinimum Wage Raises Coming To 18 States On New Year’s Day

Background on Minimum Wages in general

FastCompany.comMinimum wage increases just went into effect for these 18 states

TheHill.comMinimum wage hikes in 18 states set for New Year

Mises.orgThe Racist History of Minimum Wage Laws

ForbesThe $15 Minimum Wage Movement Is Winning, And That’s Bad News For Cashiers

ForbesSeattle Reveals The Ugly Truth About The $15 Minimum Wage Movement

NBER.orgMinimum Wage Increases, Wages, and Low-Wage Employment: Evidence from Seattle – revised October 2017

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