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Increasing Minimum Wage Brings Possible Consequences

Increasing Minimum Wage Brings Possible Consequences

Increasing Michigan's minimum wage is a done deal. $7.40 an hour today. $9.25 by 2018.

The Policy Director at the conservative Mackinac Center think tank says to prepare for unforeseen consequences.

Michael LaFaive tells WOOD Radio entry level workers who earn minimum wage are going to be hurt the most. Some will find higher paychecks, but there will be fewer jobs available.

He says other states that increased minimum wage watched businesses cut benefits, like paying for uniforms or offering a free lunch, in order to afford the higher wage.

LaFaive says Michigan's economic comeback will be threatened by a higher cost of doing business

Next week, the Mackinac Center hosts a senior policy analyst in labor economics at The Heritage Foundation who will present on ways to mitigate the economic harms caused by a higher minimum wage and on ways to hold government unions more accountable to their members.

 

 

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