Thursday, July 24, 2008

Minimum Wage Increase Leads To Higher Unemployment and Inflation

You were warned when the minimum wage increases were first enacted into law, and yet the liberals said that wouldn't happen.

Yet, we saw plenty of evidence that unemployment rates were directly tied to the increase in the minimum wage.

Today, the minimum wage increases again, from $5.85 to $6.55 an hour.

Those increases affect a wide range of goods and services, from food production to entry level jobs. Companies would rather hire fewer people at that higher wage than more people at the lower wage. Therefore, unemployment rates rise most at the entry-level of the marketplace.

The unemployment rate will increase again come next year when the final installment of the minimum wage hike takes effect.

Don't say you weren't warned

This is yet another example of the government skewing the marketplace and artificially inflating costs for consumers and producers.

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