Check out the ABSURD tweet Barack sent out:
I can only conclude the man has been sniffing unicorn farts (or dipping into blow again), because there is no sense whatsoever in his assumption that an increase in minimum wage will lead to increases in the Gross Domestic Product or jobs.
Common sense tells us the exact opposite.
Let’s say that my business can currently afford 10 workers at $7 per hour. If the minimum wage is increased to $10 per hour, I can now only afford 7 workers.
RESULT: Increasing minimum wage > Loss of jobs
My now-seven workers can’t produce as much, so I have to raise my prices just to stay in business. These price increases happen everywhere, because the minimum wage increase happens everywhere.
RESULT: Increasing minimum wage > Inflation
Higher prices everywhere mean the new minimum wage loses its buying power.
RESULT: Those who got higher wages lose the benefit of them.
Historical evidence proves that increasing minimum wage damages the jobs market.
I compared the seven most recent increases in minimum wage with percent employed. In NO case did it BOOST jobs as Obama claims in his absurd tweet.
Where the economy was slow, the minimum wage increase was followed by job losses.
Where the economy was growing, the minimum wage increase was followed by slowing or stalling of growth.
Not only is raising minimum wage bad for the economy, but it’s also bad for the people that Democrats claim it will help. Unfortunately, good intentions do not economic realities make.
Multiple studies prove that increasing minimum wage tends to eliminate jobs for the youngest and least skilled workers. Studies also find that higher minimum wages have no impact on poverty rates.
There’s one other reason I can think of to NOT raise the minimum wage now.
At $7.25, it is higher than the historical average of $6.60 (in inflation-adjusted 2013 dollars).
In the graph above, the peaks are where the feds increased minimum wage. Note that each peak is followed by a sharp downward slope. This represents the rapid loss of buying power the dollars have because of the inflation that an increase in minimum wage always causes.