Tuesday, June 01, 2010

The Morons Raised the Minimum Wage

And what did they expect?
Phil Miller explains.
The recession didn't start until late in 2007, but the unemployment rate of 16-24 year olds began to increase in the second quarter of 2007. The minimum wage was increased at the beginning of the third quarter of 2007 (July, specifically) for the first time in nearly a decade, but the increase was signed into law by then-president Bush on May 25th (the second quarter) of that year. Employers knew for certain in the second quarter that the minimum wage was going to increase, so they scaled back their hiring of low-skilled workers in that quarter.
The recession and two subsequent increases in the minimum wage - in July of 2008 and 2009 - have driven the unemployment rate of 16-24 year olds from 10% in the first quarter of 2007 to 18.7% in the first quarter of 2010.


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