The After Effects Of Michigan's Minimum Wage Increase

Economists explain why lost jobs, shuttered businesses and fewer training opportunities are likely with mandated wage increases

Eight economists explain what an increased minimum wage means for Michigan. Watch their videos at www.mackinac.org/20157.

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.

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See also:

More People On Food Stamps After Past Minimum Wage Increases

Who Is Behind the Minimum Wage Increase Drive?

Bars, Restaurants Could See 280 Percent Increase In Costs With Minimum Wage Ballot Proposal

Schauer, Other Michigan Dems Call For Higher Minimum Wage While Paying Their Interns Nothing

Debate Du Jour: Minimum Wage Takes Center Stage


Related Articles:

Study: $15-An-Hour Minimum Wage Would Kill 281,000 Michigan Jobs

Potential Corporate Welfare Binge Risks Second Michigan ‘Lost Decade’

Done: With School Pension Reform, State's Big Pension Liabilities Contained

Forbes publishes Vernuccio op-ed on minimum wage protests

Michigan Senator: Employer Mandates Are For Other People

Democrats Want Higher Minimum Wage for Others While Paying Their Workers Nothing

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A “bottlenecker” is someone who uses the power of the government to limit competition in the market and artificially boost their own profits. Bottleneckers use a variety of methods to achieve their goals, including tax loopholes, regulations, occupational licensing requirements, minimum wage laws and many more. The end result when these special interest bottleneckers succeed is fewer choices and higher prices for consumers, fewer job opportunities for workers and less innovation throughout the economy.

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