Economists explain why lost jobs, shuttered businesses and fewer training opportunities are likely with mandated wage increases
Despite overwhelming evidence from economists on both sides of the political aisle, Republicans in leadership positions in the Michigan Legislature pushed for an increase to the state's minimum wage.
They were rewarded for their efforts when Republican Gov. Rick Snyder signed the increase into law late last month.
By 2018, employers across the state will be forced to pay at least $9.25 an hour to workers. Forced increases to the minimum wage will continue in 2019 and beyond because the wage will be adjusted to the rate of inflation or 3.5 percent, whichever is lower.
The mandate will be phased in over the next four years. As has proven to be the case with other arbitrary increases, the people who the increase is intended to help most will suffer worst.
Others problems will occur, as well. Local economies will suffer. Mom and pop businesses will struggle. Training opportunities will wane for some workers and minorities will lose opportunities to enter and advance in the workforce. Those are the conclusions of eight economists who have studied minimum wage increases. They shared their thoughts with the Mackinac Center for Public Policy. Watch their videos here.