BrianGarst.com

Thanks to an ill considered bit of nanny state economic meddling last year, the federal minimum wage is set to increase again at the end of July from $6.55 to $7.25.  What better time could they have picked to increase the number of unemployed?  Secretary of Ruining the Economy, Hilda L. Solis, spouted the following nonsense:

“This administration is committed to improving the lives of working families across the nation, and the increase in the minimum wage is another important step in the right direction,” said Secretary of Labor Hilda L. Solis. “This well-deserved increase will help workers better provide for their families in the face of today’s economic challenges. I am especially pleased that the change will benefit working women, who make up two-thirds of minimum wage earners.”

It will benefit some working women, but it will do so at the expense of those who lose their job as a consequence of this legislation.

Some facts from the Employment Policy Institute:

1. For every 10 percent increase in the minimum wage, teenage employment at small businesses is estimated to decrease by 4.6 to 9.0 percent.
   
   According to the U.S. Bureau of Labor Statistics, teen unemployment is at 24 percent, its highest rate in 17 years.
   
2. For every 10 percent increase in the minimum wage, estimates show employment may fall as much as 8.5 percent for young black and Hispanic males age 16-19.

   African American teen unemployment is currently at 38 percent, which is four times the national unemployment rate and 27 percent higher than last year.
   

3. According to U.S. Census data, only 16.5 percent of minimum wage recipients are raising a family on the minimum wage. 83.5 percent are teenagers living with working parents, adults living alone, or dual-earner married couples.

minimum wage