Despite actual consensus among economists to the contrary (p. 86, Q 27), The Denver Post‘s Howard Pankratz is reporting today what a boon it will be to the Colorado economy when the minimum wage goes up on New Year’s Day. Even Colorado Speaker of the House Mark Ferrandino is crowing about how amazing it is.
— Mark Ferrandino (@MarkFerrandino) December 20, 2013
Citing “analysis” by the liberal “nonpartisan” Economic Policy Institute, The Denver Post states this increase in the minimum wage will result in $18.7 million in economic growth.
[Sound cue: nails on a chalkboard]
Howard, shame on you. A simple Google search would have shown you that EPI is decidedly liberal. Let us help you.
In fact, EPI is about as nonpartisan as the Colorado Democratic Party. So, let’s make sure we attach said descriptive to all nonpartisan groups that we write about. Among them: the Heritage Foundation, the Sierra Club, Planned Parenthood, and Center for American Progress.
Now, the meat and potatoes of this entire issue. Why are so many actual economists against raising the minimum wage? Because it ends up hurting the very people it sets out to help. As a Washington Times opinion piece by former Minority Leader of the Maryland House of Delegates Ellen Sauerbrey noted back in March on Maryland’s proposed minimum wage hike:
“The answer is obvious. Markets set wages. To stay in business and keep people employed, businesses have to be competitive. The cost of wages is reflected in the price of the product or service to the consumer. When labor costs go up, employers have two choices. They can attempt to pass the price increases on to customers (and perhaps lose their customers) or find a way to cut costs…
…The main impact of minimum-wage laws is to hurt the unskilled and poor, who are priced out of entry-level jobs. Employers will not hire workers whose lack of skill does not produce enough to justify paying $10 per hour, plus fringe benefits such as Social Security, unemployment insurance, vacation or sick leave and health care.”
Liberals want to paint a false dichotomy between raising the minimum wage and doing nothing. Yet, even that stalwart of the free market Milton Friedman was concerned with helping the poor. His idea of a negative income tax, where the poor get money directly from the government, evolved into today’s earned income tax credit. So successful in accomplishing its goal of helping the poor, the pages of the New York Times praised it shortly after his passing.
So, liberals, please stop trying to help the poor with your terrible policies; don’t they already face enough hardships without you piling on?