‘Feel good’ policies don’t spread the joy

Posted on July 27, 2009

Federal politicians’ “feel-good” rhetoric merely reinforces policies that result in unemployment for entry-level workers, especially in a weak economy (“Minimum wage increase draws mixed reaction,” July 23).

Decades of economic research predicted that there would be an increase in job losses following minimum wage hikes, particularly among vulnerable groups like minority teens and adults without a high school diploma.

As a result of another federal wage hike, a business with 20 entry-level employees will have to absorb almost $30,000 in new labor costs (not including wage increases employers are likely to pay employees making near the minimum wage)!

Mandating yet another increase in labor prices without any regard for what is happening in the economy will force employers to cut hours and eliminate some jobs entirely.

The federal unemployment rate has skyrocketed 70 percent from June 2008 to June 2009. Rather than creating barriers to entry into the workforce, now is the time to give employers the tools to create new positions and help workers keep their jobs. For working Americans – especially vulnerable entry-level workers – a lower minimum wage is much better than none at all.