Rising Minimum Wages Cut Employment and Opportunity

Dodson Strawbridge / July 23, 2009

On Friday, the federal minimum wage will increase from $6.55 to $7.25, an increase of almost 10.6%. This increase is the final installment of the minimum wage increase that Congress added to the 2007 Iraq War spending bill. The program will raise the income level of many Americans who are currently employed in minimum-wage, often entry-level positions. Unfortunately for Congress and the American public, this legislation will have several unintended consequences.

Raising Minimum Wages Will Increase Unemployment – As any Economics 101 student could tell you, if the price of labor increases, employer demand for labor will decrease. This increase will exacerbate the already-gloomy employment climate in the United States. An increase in minimum wage will directly impact industries that are most reliant upon minimum (more…)