Friday, August 28, 2015

The Immortal Life of Economic Claims: The $15 / hour wage experiment.

Link to Full Size Image
The only thing preventing me from outright accusing the American Enterprise Institute of deliberately fudging data is that a few days have passed following their report about Seattle's $15 per hour wage, and what  I found this morning on Facebook posted by Ring of Fire Radio.

Of course opponents to increasing the minimum wage will claim that the economy is recovering despite the increase in the wage, not because of the minimum wage, until you compare the change in economic growth in areas where the minimum wage was not increased.

Economic Policy Institute: August 21,v2015: More of the Same in the July State Jobs Report.

Here are a list of sources related to the graphic:

American Enterprise Institute: August 9, 2015: Minimum wage effect? January to June job losses for Seattle area restaurants (-1,300) largest since Great Recession.

American Enterprise Institute, August 19, 2015: More troubling signs of minimum wage damage on the West Coast.

Ring of Fire Radio: August 27, 2015: Fox Predicted $15 Minimum Wage Would Destroy Seattle: Jobs Report In: Proves Fox Experts are Idiots.

For as long as I can remember, every time the idea of raising the minimum wage comes up, the same dusty old claim that it will ruin jobs is rolled out.

Here's the position of the American Legislative Exchange Council (ALEC) on raising the minimum wage.

The Economic Policy Institute has a different perspective: April 30, 2015: We Can Afford a $12 Minimum Wage by 2020. Unfortunately, tied to inflation, the minimum wage should already be well over $23 per hour, so calling for a $15 minimum wage now or in a few years is just insincere.