New York Raises Minimum Wage, Every Liberal In America Needs To See What Happened Next

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The minimum wage isn’t complicated. When you force small businesses to raise wages they are forced to cut costs or raise prices. Both of those moves are not good for the consumer and it is often times detrimental to the economy as a whole. But, for whatever reason, the liberal left has had a hard time coming to terms with that. They’d rather instruct the government to arbitrarily raise wages to make themselves feel good.

Little do they know that they aren’t actually helping the people they think they are helping. They are hurting them.

From The Federalist:

Harvard Business School recently released a working paper titled “Survival of the Fittest: The Impact of the Minimum Wage on Firm Exit,” discussing the effects of minimum wage policies on companies’ survival. For those with any shred of economic understanding, the results were predictably dismal.

Economists have found minimum wage hikes to be unhelpful in reducing inequality and followed by more low-income workers being laid off, a great number of whom are people of color. The first of a series of scheduled minimum wage hikes in Seattle in 2015 resulted in a 1 percent drop in the employment rate of Seattle’s low-wage workers and preceded the worst job decline for the city since the 2008-09 recession.

According to a 2014 report, only 17 percent of Seattle workers previously making under $15 per hour before the hike were white. The rest were Asian (20 percent), Black (28 percent), and Hispanic (22 percent). Undoubtedly, these folks were disproportionately hurt by the reduction in employment that followed the hikes.

While “racial and economic justice” through forced minimum wage hikes sounds appealing, it just doesn’t work the way its supporters suppose. In fact, quite the opposite. Slapping a $15 minimum wage requirement on a large corporation might “feel good” to angry workers, but those very workers are ultimately the ones who will pay the price.

Democrats don’t want to listen to studies like this. It’s a shame because a lot of people out there have been really hurt by minimum wage increases.

Don’t take my word for it.

Check out what has happened to farmers in New York because of the hike.

From The Daily Wire:

And that drop, as the Press-Republican reports, was largely precipitated by Gov. Andrew Cuomo’s decision to sign a state-mandated increase in the minimum wage for labor into law in 2016. Although the federal minimum wage is $7.25 per hour, the state’s is now $10.40 per hour in upstate counties, increasing to $12.50 on December 31, 2020. Federal statistics reveal the average farm wage in New York is now roughly $13 an hour.

Several farmers told the Press-Republican that the combination of higher minimum wages, rising costs and depressed commodity prices have led to the closing of several farms; Joseph Giroux, a Beekmantown dairy farmer, acknowledged, “We’ve had a few farms go out because they just couldn’t compete anymore.” Farm Bureau President David Fisher echoed, “There is a lot of stress in the countryside,” adding, “If the state is going to force a higher wage on farms, they should be prepared to offer greater assistance to offset the costs.”

Here’s more.

From Press Republican:

Several farmers contacted in upstate regions confirmed that New York’s higher minimum wages, rising costs and depressed commodity prices have combined to increase the challenge for keeping operations viable.

“We’ve had a few farms go out because they just couldn’t compete anymore,” said Joseph Giroux, a Beekmantown dairy farmer and former Clinton County legislator.

“We’re all concerned with the effects of the minimum wage going up every year,” he said. “Our biggest expense is labor. It’s all hand work.”

In pastoral Otsego County, James Powers sold his dairy herd last year and now limits his efforts to beef cattle and keeping honeybees.

“When dairy is struggling, everyone is struggling,” said Powers, predicting more upstate farms will end up being taken over by “massive factory farms.”

“It’s been brutal the law few years, and it’s not looking any better this year,” added Powers, noting he is disappointed that state lawmakers seem less than eager to help rural regions profit from underground natural-gas deposits.

Farmers are some of the hardest working Americans you’ll find and their lives are clearly being made more difficult because of this minimum wage law.

[Note: This post was written by Andrew Mark Miller]


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