How The Minimum Wage Law Is Hurting The Poor, Creating Greater Income Inequality And Poverty

Craig HueyGovernment, Congress, and Politics, Social Leave a Comment

Raising the minimum wage is all over the news and liberal politicians are making it the #1 topic. But, it destroys opportunities and jobs.

And it hurts the poor, the ones it’s supposed to help.

California on July 1st raised the minimum wage from $8 to $9 an hour and will raise it to $10 in 2016.

   What has happened so far?

  • 66% of restaurant owners have raised their prices (my wife and I noticed 15%-25%)
  • 45% reduced employee hours
  • 42% reduced staff

Expect these figures to go higher.

For restaurant workers, this is usually an entry-level job. It’s for supplementing income, just entering the workforce–it’s training for better employment later.

   But the minimum wage is destroying that opportunity.

And eventually it’ll hurt not only the poor, but also the business and its ability to survive and grow jobs. Raising prices $5, $10, $15 because of the minimum wage causes a decline in customers.

Soon you will see more and more businesses replace entry-level jobs with automation. iPads and robots will be cheaper to use than labor, thanks to bureaucratic policies by vote-hungry politicians.

   The unintended consequences will hurt us all, especially the poor.

About 2.4% of all workers in the U.S. earned the federal minimum wage. A large portion (25%) are teens, 50% are under 25 years old and 66% work part time.

“It’s time to give America a raise” may sound good, but the reality is saying, “It’s time to vote for me as I destroy jobs and opportunity.”

In fact, it’s estimated that a federal minimum wage income advocated by President Obama will result in 500,000 to 1 million jobs lost.

   Good intentions cannot suppress economic reality.

What do you think about such a momentous victory for our business owners’ rights? Let me know at


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