For years those pushing for minimum wage hikes have cited the poor underclass, trying to raise families on minimum wage--and opponents have pointed out that those geting minimum wage are mostly live-at-home teenagers and those just gaining entry into the job market. For years economists have pointed out that raising minimum wage will translate into fewer jobs for those in the lower end of the workforce, and been mocked by wage-boost-proponents who say economists don't know what they're talking about, while "activists" do. A field report from one of our laboratories of social policy, in this case Arizona:
It's not just teenagers getting the squeeze, of course. Anyone falling in the "slot" between the old wage and the new one is facing the old cost/benefit evaluation from their employer, and some of them will lose their jobs. Those who stay employed will have to work harder to pick up the slack without busting payroll budgets--which means overtime will definitely be frowned upon.
But hey, those who still have jobs are making more money! DUH!
[Cross-posted to Stubborn Facts]
