Helping the “forgotten man” was an important and successful message for President Donald Trump in his election campaign.
He tapped into the anxieties of many Americans who are struggling to find work and are watching as traditional industries disappear or are gobbled up by automation.
While some of this development has been natural, much has been artificially created by bad policies. In particular: the minimum wage.
A bombshell report was released Monday about the impact of minimum wage hikes in Seattle, Washington. The study, conducted by economists at the University of Washington, showed that minimum wage laws significantly decreased employment for lower-income workers.
Additionally, the report found that average hours for low-income employees had also declined since Seattle’s $13 minimum wage law began being implemented in 2015.
The original proposal was for a $15 minimum wage—which has been a benchmark for national minimum wage advocates. If the study is accurate, one would imagine a further $2 wage minimum would have even more drastic effects.
Employers, burdened by the newly imposed expenses, are cutting hours and cutting payroll. Under these conditions, many Americans are struggling to find work, or are underemployed when they do. A toxic brew.