Backers push fairy tale minimum wage economics

By Jarrett Skorup | Michigan Capitol Confidential

According to MIRS News, the backers of the ballot proposal that would increase the minimum wage to $10.10 per hour, “said the change would raise wages for about 940,000 people in Michigan, or 24 percent of workers.”

That number is reached by looking at the number of workers currently making less than $10.10 per hour, adding in hundreds of thousands of other employees, assuming they will also get a raise and pretending that mandating a 36 percent increase in labor costs would have no effect on employment.

If that’s the kind of economics minimum wage backers believe in, they are cruel to ask for only $10.10 per hour. Raising the minimum wage to $20 per hour would “affect” even more employees; $100 per hour would “raise wages” for virtually all Michigan workers.

at Michigan Capitol Confidential.

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