The laboratories of the States (and some cities) have proven time and again that politicians are a threat to the job market. Mandatory minimum wages never create more jobs. They result in higher unemployment, fewer hours, higher prices, and less opportunity. Local Democrats have decided they want that for New Hampshire.
Minimum wage mandates kill jobs everywhere they are tried. News you can find in the sorts of places liberals typically search for affirmation. And still, they want this for New Hampshire.
Then there is the stark reality of, well, reality. New Hampshire is doing better than all of those places without political meddling.
- Nationally, only 2.3 percent of all hourly wage workers earn $7.25 per hour or less, Bureau of Labor Statistics data show. “Minimum wage workers tend to be young,” according to the BLS. “Although workers under age 25 represented only about one-fifth of hourly paid workers, they made up about half of those paid the federal minimum wage or less.” They also tend to be single. Never-married individuals make up 40 percent of those who earn an hourly wage but 68 percent of hourly wage workers who earn a minimum wage. Married individuals are 44 percent of hourly wage workers but only 21 percent of hourly wage workers who earn the minimum wage or less.
- Minimum-wage employees tend to work part-time, BLS data show. Although about 75 percent of hourly wage workers hold full-time jobs, only 35 percent hourly employees with a full-time job earn the minimum wage or less. Only 25 percent of hourly workers hold part-time jobs, but 65 percent of hourly workers with part-time jobs earn the minimum wage or less. Of minimum-wage employees, fully 60 percent work part time.
- In New Hampshire, the number of minimum wage workers fell by almost half in 2017, dropping from just over 15,000 people in 2016 to just 8,000 in 2017, according to the state Economic and Labor Market Information Bureau. Forty-nine percent of those 8,000 minimum-wage earners were under age 25, and the same percentage worked part-time.
- The minimum wage is an entry-level wage typically paid to the lowest-skilled employees, the vast majority of whom work their way to higher pay within a year. A 2013 study by Texas A&M economists for the National Bureau of Economic Research found that “minimum wage compensation is three- and-a half times more prevalent among new workers than in the entire labor force.” Using data for 3.5 million people from 1979-2012, they found that 77.6 percent of people who earned the minimum wage in one year were still employed the following year, and of those 65.85 percent earned more than the minimum wage.
The NH House passed a bill to create a state wage beginning at $9.50 per hour in 2020. It goes to $10.75 per hour in 2021 and then to $12 per hour in 2022.
They wanted $15.00 per hour but settled for $12.00 but why stop there? If you know better what’s the difference between killing a few jobs and killing a few thousand? Why not ask for $50.00 or $100.00? Because that would demonstrate how absurd the proposition- a rule that applies to any number.
People forced into unemployment by benevolent government and a party that lives and breathes to institutionalize dependency.
Why do we have to experience this to understand it is true?
Image: NH Avg Wage without mandated minimum hourly rates.