Joobo the King of Wisdom

The Statistic Liberals Want You to Ignore: A Rise in the Minimum Wage Means a LOSS in Jobs

Liberals and their socialist ilk, who have no right to speak on any matter regarding capitalism, continue to parrot the fraudulent line that a rise in the minimum wage somehow means that jobs will increase. So, the liberals tell the American businessman and businesswoman, we will increase your costs and miraculously this will mean more jobs.

Karl Marx couldn't be prouder.

Unfortunately, liberalism and socialism do not mean reality, as evidenced by what is happening in Arizona, and soon to be all over: a raise in the minimum wage is causing people to be laid off.

The media, who like to make sure the liberal/socialist line is reported as fact rather than hallucination, is shocked (shocked! I tell you!) by this.

New wage boost puts squeeze on teenage workers across Arizona

Oh, for the days when Arizona's high school students could roll pizza dough, sweep up sticky floors in theaters or scoop ice cream without worrying about ballot initiatives affecting their earning power.

That's certainly not the case under the state's new minimum-wage law that went into effect last month.

Some Valley employers, especially those in the food industry, say payroll budgets have risen so much that they're cutting hours, instituting hiring freezes and laying off employees.

And teens are among the first workers to go.

Companies maintain the new wage was raised to $6.75 per hour from $5.15 per hour to help the breadwinners in working-poor families. Teens typically have other means of support.

Mark Messner, owner of Pepi's Pizza in south Phoenix, estimates he has employed more than 2,000 high school students since 1990. But he plans to lay off three teenage workers and decrease hours worked by others. Of his 25-person workforce, roughly 75 percent are in high school.

"I've had to go to some of my kids and say, 'Look, my payroll just increased 13 percent,' " he said. " 'Sorry, I don't have any hours for you.' "

Messner's monthly cost to train an employee has jumped from $440 to $580 as the turnover rate remains high.

"We go to great lengths to hang on to our high school workers, but there are a lot of kids who come in and get one check in their pocket and feel like they're living large and out the door they go," he said. "We never get our return on investment when that happens."

For years, economists have debated how minimum-wage increases impact the teenage workforce.

The Employment Policies Institute in Washington, which opposed the recent increases, cited 2003 data by Federal Reserve economists showing a 10 percent increase caused a 2 percent to 3 percent decrease in employment.

It also cited comments by noted economist Milton Friedman, who maintained that high teen unemployment rates were largely the result of minimum-wage laws.

"After a wage hike, employers seek to take fewer chances on individuals with little education or experience," one institute researcher told lawmakers in 2004.

Tom Kelly, owner of Mary Coyle Ol' Fashion Ice Cream Parlor in Phoenix, voted for the minimum-wage increase. But he said, "The new law has impacted us quite a bit."

That's life for you: vote to cut your own throat and then act stunned when your shirt gets all bloody.

So, to sum up: when a liberal tries to talk economics, either leave the room or hit them in the head. Hard.