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Minimum Wage Hikes Means 1.8 Million Less Jobs in the U.S.

<p>As the minimum wage increases in several states&comma; the more businesses are forced to cut hours and jobs&period;<&sol;p>&NewLine;<p>Raising the country&&num;8217&semi;s workers&&num;8217&semi; salaries in this fashion will result in 1&period;8 million less jobs&comma; according to a recent American Action Forum report&period;&nbsp&semi;<&sol;p>&NewLine;<p>&&num;8220&semi;In the end&comma; the additional earnings transferred from the job losers to the job keepers are minimal&comma;&&num;8221&semi; and under minimum wage increases&comma; &&num;8220&semi;for each job loss&comma; total wage earnings only rise by &dollar;6&comma;900&comma;&&num;8221&semi; according to the report&period;<&sol;p>&NewLine;<p>Republicans have always argued that when you raise wages&comma; businesses are forced to cut corners in other areas&period; And this report proves that&period;&nbsp&semi;<&sol;p>&NewLine;<p>&&num;8220&semi;The full minimum wage increases over the next several years will cost 1&period;8 million jobs&comma;&&num;8221&semi; said policy analysts Ben Gitis and Curtis Arndt&period; &&num;8220&semi;When combined with recent previous minimum wage increases in some of the same states&comma; the total loss comes out to 2&period;6 million jobs&period;&&num;8221&semi;<&sol;p>&NewLine;<p>The authors note that although the proposals to raise the minimum wage are &&num;8220&semi;well-intended&comma;&&num;8221&semi; it is also important &&num;8220&semi;to consider the negative labor market consequences&period;&&num;8221&semi;<&sol;p>&NewLine;<p>&&num;8220&semi;Unfortunately&comma; it is the lowest-wage&comma; least-skilled workers who pay the largest prices for these consequences&comma;&&num;8221&semi; states the report&period; &&num;8220&semi;While they need those experiences most to develop skills and find better paying jobs&comma; they are the least likely to be able to keep their jobs or find a new one when the minimum wage rises&period;&&num;8221&semi;<&sol;p>&NewLine;<p>The former Obama administration and democrats argue that many low-wage workers are supporting a family and need an increase in income to struggle less&period;<&sol;p>&NewLine;<p>&ldquo&semi;This notion that the minimum wage doesn&rsquo&semi;t need to be raised because all it is is pocket change for teenagers so they can go out and buy sneakers isn&rsquo&semi;t reflective of today&rsquo&semi;s labor market&comma;&rdquo&semi; said Tom Perez&comma; the former Labor secretary under Obama&period; &ldquo&semi;These are breadwinners for families in many&comma; many cases&period;&&num;8221&semi;<&sol;p>&NewLine;<p>But again&comma; many of these low-wage employees don&&num;8217&semi;t benefit from wage increases since hours&comma; and even jobs are often cut&period;&nbsp&semi;<&sol;p>&NewLine;<p>&ldquo&semi;If the minimum wage were raised&comma; these individuals would have a harder time finding jobs&comma;&rdquo&semi; said Diana Furchtgott-Roth&comma; a former Labor Department chief economist for the George W&period; Bush administration&period; &ldquo&semi;There will be more encroachment of technology into the low-wage jobs that have served as entry points for teens and low-skilled workers&period; If you have &dollar;15 instead of &dollar;7&period;25 &lbrack;minimum wage&rsqb;&comma; then these low-skilled workers just aren&rsquo&semi;t going to get hired&period;&rdquo&semi;<&sol;p>&NewLine;<p>Another former report by the nonpartisan Congressional Budget Office had similar findings to the recent American Action Forum report&period; This 2014 report found that an increase to &dollar;10&period;10 an hour resulted in 500&comma;000 jobs lost nationwide&period;<&sol;p>&NewLine;<p>Trump has nominated Andy Puzder&comma; the chief executive of CKE Restaurants&comma; as Labor secretary&period; He is open to an increase in mimmim wage&comma; but not a spike&period;&nbsp&semi;<&sol;p>&NewLine;<p>&ldquo&semi;Instead of creating a living wage&comma; the fight for dramatic minimum wage increases could leave millions with no wage at all&comma;&rdquo&semi; wrote Puzder in a Wall Street Journal column in 2015&period;<&sol;p>&NewLine;<p>Many democrats are disappointed in this selection and believe that Puzder won&&num;8217&semi;t have the interests of workers as his first priority&period;&nbsp&semi;<&sol;p>&NewLine;<p>However&comma; Trump believes that Puzder will &ldquo&semi;fight to make American workers safer and more prosperous by enforcing fair occupational safety standards and ensuring workers receive the benefits they deserve&period; And he will save small businesses from the crushing burdens of unnecessary regulations that are stunting job growth and suppressing wages&period;&rdquo&semi;<&sol;p>&NewLine;<p>Ultimately&comma; a minimum wage spike would not only be detrimental to the businesses&comma; especially small ones&comma; but the employees would ultimately suffer with weekly hour cuts and even may lose their job entirely&period;<&sol;p>&NewLine;

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