Michigan, $15 Minimum Wage and Jobs
The Heritage Foundation, a D.C. based think tank just released their new report titled “How $15-per-Hour Minimum Starting Wages Would Affect Each State”. The report was created from their study of data from the National Bureau of Economic Research. They found that Michigan would have a loss of 281,000 full-time jobs by 2021.
They believe that the minimum wage increase would directly affect 37.4% of Michigan wage and salary workers.
The study also estimated 9 million jobs would be lost nationally due to state minimum-wage hikes.
We can just ignore this study at the risk of all those jobs and the real affect that would have on real people, or take it seriously and try to determine why this might occur and how to avoid those job losses.
James Sherk, the study’s author stated that an increase in the minimum wage:
would result in many states losing hundreds of thousands of jobs and would considerably curtail employment opportunities, especially for less-skilled workers
We must always remember the simple law of economics and that is there is a relationship between the price of a product or service and the quantity demanded of that product or service. If you believe in that then if governments raise the price of employment less people will find themselves with a job.
If you do not believe in that simple economic law then ask yourself at some point do you stop buying a product or service if the price continues to rise?
I slowed my consumption of beef due to the huge price increases over the last few years. I am sure there is a product or service you stopped or decreased buying over the last few years. That my friends is the simple law of the relationship of prices and what we as consumers buy or consume.
Let’s talk about this today on The Live with Renk Show which airs Monday through Friday 9 a.m. to noon. To let me know your thoughts during the show please call (269) 441-9595.
Or please feel free to start a discussion and write your thoughts in the comment section.