ONE "EVERYBODY KNOWS" ECONOMIC MANTRA BITES THE DUST

CAN THE SAME BE SAID FOR "CUTTING TAXES CREATES JOBS?" 

Raising the minimum wage does not kill jobs, no matter what Republicans tell you—and a new study of the Seattle restaurant industry, where some businesses are already paying a $15 minimum wage, provides another data point showing just that. According to the University of California, Berkeley, study, the increased minimum wage had employment effects that were “not statistically distinguishable from zero,” which is a fancy way of saying “we looked and we could not find a damn thing.” The Seattle Times reports:
Indeed, employment in food service from 2015 to 2016 was not affected, “even among the limited-service restaurants, many of them franchisees, for whom the policy was most binding,” according to the study, led by Berkeley economics professor Michael Reich. [...]
It can be hard to separate what impact the wage law had on employment in Seattle versus the effect of the city’s white-hot economy and tight labor market, but “we do our best,” Reich said.
The study compares the wage and employment growth rates in Seattle to a control group of counties, in Washington state and across the U.S., that had similar growth rates as Seattle in the years shortly before the minimum-wage law took effect.
A report issued last year found indications that the increased minimum wage did slightly restrict job growth, but we don’t know if the difference comes from differing methodologies or from the studies covering different time frames. Both studies have to contend with Seattle’s booming economy, which could conceivably mask lowered growth of the job rate for low-wage workers … but which itself refutes the Republican talking points against raising the minimum wage. Because “it’s hard to tell if even more low-wage workers would otherwise be employed because the economy is so darn good” does not exactly back up claims that having the minimum wage be a living wage will destroy the economy.

NOTE:  The $15 minimum wage was supposed to crater Seattle's economy because, umm, well "everybody knows that raising the minimum wage is a job killer."  This is what we've been hearing for decades now.  Hearing without a scintilla of data or studies to back up this "everyone knows" economic mainstay of conservative economic philosophy.  I'm wondering if "cutting taxes creates jobs" - another economic certainly that "everyone knows" - might also go the way of the Seattle's $15 minimum wage since, here too, there's not a single scientific study that shows this to be true even though this too has been a conservative mainstay since 1980.  And, we've been cutting taxes, ever since and so much so that as of today the United States should be drowning in all those jobs created by cutting taxes.         
Have A Good Day!  


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