Saturday, June 4, 2016

Cato Report: Federal Minimum Wage Hikes Lead to Wage Stagnation

Federal Minimum Wage Hike Leads to Wage Stagnation

According to the Cato minimum federal wage increases would do little to help workers at the bottom of the economic ladder.  Instead, it would do nothing but help further contribute to wage stagnation, and create even more sub-minimum wage jobs. 

As I've said all along, raising the federal minimum wage isn't going to help those on the bottom rung of the economic ladder.  It will lead to price increases and everybody would have to pay more money for the same goods.  It doesn't benefit anybody.  Not only that, but the work force would be reduced as a result of raising the minimum wage in entry level jobs.  Fast food employers like Wendy's are using kiosks as a way to save money in the workers.  They would be used to replace employees when it comes to the cash register.  The costs of business operations would increase with government-mandated minimum wage increases.  Click on the above link to read the full story.

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