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Will a rising minimum wage promote more spending to make up for lost jobs?


Friday, April 14, 2017

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Mike Pasulka is co-owner of Players Sports Grill in Poway and San MarcosMike Pasulka, co-owner of Players Sports Grill in Poway and San Marcos, has started working some bartending shifts himself to cut down on labor costs. It's like balancing a scale; when one side goes up the other side goes down, he said. (K.C. Alfred / San Diego Union-Tribune)

No: Unintended consequences far outweigh relatively few benefits: greater pressures on worker productivity to compensate for higher wages; rising cost of living as cost of goods and services increases; not only existing jobs and companies lost, but those that would have been created; fewer opportunities for teenagers and inexperienced workers to enter labor market; hastens conversion to automation and machines doing work. In the end, net lower income overall and further disparity of middle class households. - Kelly Cunningham, National University System