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When Seattle raised its minimum wage to $13/hour in 2016, low-skill workers found they earned less after the law took effect. How? Because they were asked to work fewer hours.

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Lifeways CEO was paid £923,000 last year. The company’s 4 directors earned £1.65million, while paying its care workers the minimum wage. Workers told us staffing levels were at times dangerously low, and they had to work up to 16 hours a day. I put this to the CEO. 2/2

Lifeways CEO was paid £923,000 last year. The company’s 4 directors earned £1.65million, while paying its care workers the minimum wage. Workers told us staffing levels were at times dangerously low, and they had to work up to 16 hours a day. I put this to the CEO. 2/2

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Minimum wage hikes are unemployment machines that price the least skilled workers out of the market. It’s a price floor. If the value of low skill labor is below that line, the worker is priced out of a job. It does not magically make labor more valuable. In America Samoa, they cut thousands of jobs within 3 years (2007). In Seattle, a University of Washington study found that earnings of low wage workers fell as a result of hours lost (2015). In France, the minimum wage is so high relative to average pay that youth unemployment in the banlieues was at 25% for decades. In South Africa, households stopped hiring domestic workers they could no longer afford (2019). But if you’re an established worker who wants to eliminate the competition, it could be a solid move to support it.

Minimum wage hikes are unemployment machines that price the least skilled workers out of the market. It’s a price floor. If the value of low skill labor is below that line, the worker is priced out of a job. It does not magically make labor more valuable. In America Samoa, they cut thousands of jobs within 3 years (2007). In Seattle, a University of Washington study found that earnings of low wage workers fell as a result of hours lost (2015). In France, the minimum wage is so high relative to average pay that youth unemployment in the banlieues was at 25% for decades. In South Africa, households stopped hiring domestic workers they could no longer afford (2019). But if you’re an established worker who wants to eliminate the competition, it could be a solid move to support it.

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