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Roll Back Minimum Wage, Watch Teens Get Jobs
July 2010 · Michael Saltsman · Indianapolis Star
It’s one of the fundamental laws of economics: When you increase the price of something, you will ultimately decrease demand for that product. With the first anniversary of the recent 40 percent hike in the minimum wage upon us, we see that maxim in effect once again. A new study by labor economists William Even (Miami University) and David Macpherson (Trinity University) shows that the federal wage… -
Minimum Wage Indexing will Push More Teens to the Unemployment Line
July 2010 · Michael Saltsman · Atlanta Journal Constitution
In an effort to help economically poor families make ends meet, some Georgia legislators proposed indexing increases in the minimum wage to inflation. The idea is that low-income Americans should see their wages go up when basic necessities like gas and food become more expensive. But there are a few problems with their plan: Economists have shown that indexing the minimum wage to inflation does little to… -
Jobless Michigan Teens Can Thank the Minimum Wage Hike
July 2010 · Michael Saltsman · Detroit News
Teens have it pretty tough these days. From bullies and standardized tests to peer pressure and Facebook fights, modernity is adding stress to every aspect of the lives of young adults. This summer, you can add the death of the entry-level job to that list of woes. Young adults are facing unprecedented unemployment rates — and the figures for dropouts and minorities are even more staggering. No… -
A Tip Credit is Better Policy Than Politics
July 2010 · Michael Saltsman · Minneapolis Star Tribune
By calling for the introduction of a tip credit for Minnesota’s tipped employees, Republican gubernatorial candidate Tom Emmer managed to prove once again that a gaffe is something you say that is both true and inappropriate. While economic research suggests his plan could be a boon for workers, businesses and customers alike, the economic naiveté of voters has opened the door for politicians to make hay off… -
It’s Hard Out There for a Teen, Especially in California
July 2010 · Michael Saltsman · Los Angeles Daily News
While your average worker is mired in the midst of the Great Recession, the job outlook for teenagers is more reminiscent of the Great Depression: Nationally, more than one in four teens is unemployed, and the number is even higher in California. A new analysis of the numbers by the Employment Policies Institute shows that the average unemployment rate for teenagers over the last year in the… -
Increase In Minimum Wage Kills Jobs
July 2010 · Michael Saltsman · The Dispatch and Rock Island Argus
Illinois’ Ray Kroc made the hamburger-flipping teen a mainstay on the American scene when he introduced McDonald’s. If the Illinois Legislature continues increasing the minimum wage, they might soon do the same for hamburger-flipping robots. When labor costs go up, business owners can do one of three things: Raise prices, cut costs or shrink their profit margins. Given the consumer’s insatiable demand for ever-lower prices, and the…