New Study In D.C. Finds That New $15 Minimum Wage Could Cost 1,200 Jobs

Tyler Durden's picture

Authored by Ted Goodman via The Daily Caller

A new study that analyzes the potential effects of a $15 minimum wage in the District of Columbia (Washington, D.C.), found that an increase to $15 could cost 1,200 jobs.

DC

 

The District of Columbia’s Office of Revenue Analysis released a report Thursday, asserting that 150,000 workers in the District would be affected by the higher minimum wage and as many as 1,200 jobs could be lost by 2020 due to the new policy.  Of course, nearly one-third of those jobs are in the food service industry where young people, already suffering from massive unemployment rates, represent a disproportionate percentage of the labor force. 

DC

 

The study further states that as many as 2,000 jobs could succumb to the increased minimum wage by 2026.

The mayor’s “Fair Shot Minimum Wage Amendment Act,” stipulates that the minimum wage increases to $15 an hour by 2020, with incremental increases each year. The minimum wage is currently $11.50.

DC

 

The findings revealed that nearly two-thirds of the pay increases will benefit non-D.C. residents who work in the District, but live elsewhere (likely Virginia or Maryland, which borders D.C.). While nearly two-thirds of the pay increases go to non-residents, D.C. residents will absorb 80 percent of the job losses.

“This study proves what we’ve known all along: this dramatic D.C. wage hike will hurt the most vulnerable in the District, costing them jobs and important economic opportunities,” Jeremy Adler, Communications Director for America Rising Squared, a conservative policy organization, told the Daily Caller News Foundation (TheDCNF).

“D.C. must focus on creating more good-paying jobs for workers that need them the most and it’s clear an artificial minimum wage increase is the wrong approach to achieving this goal,” Adler continued.

The Obama administration proposed an increase to the federal minimum wage from $7.25 to $9.00 an hour in 2013. The former president continued to call for an increase in the federal minimum wage throughout his presidency.

Seattle, Washington raised its minimum wage to $15 in 2014, followed by San Francisco and Los Angeles. New York Gov. Andrew Cuomo signed into law a new $15 minimum wage for his state in 2016, and the University of California proposes to pay its low-wage employees $15.

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besnook's picture

what bs. the real minimum wage is already around $12 bucks an hour except for some places in the south. fast food shops are actually paying higher wages to "key" people who actually want to work when they are at work. a minimum wage rise to $15/hr will jusrt raise some prices and trim mom amd pop shops but it probably(like past minimum wage raises) will pass generally unnoticed by en mployees and employers.

Oldwood's picture

I think government should set ALL wages, including yours.

I can envision a great government system of efficiency where they can evaluate each profession as to its value to a progressive society and then have specialists evaluate each person as to their attributes.

I mean, it' ONLY fair.

Freedom simply cannot deliver the fairness of a bureaucracy. Not when you require equality of outcome rather than equality of opportunity.

FireBrander's picture

The Minimum wage, in the past, was the line between employment and exploitation; which is what it should be.

Today, the Minimum is the line between living in your car and living in a Zero down, no doc, 7 year balloon finananced McMansion.

$15hr is $31,200 a year...you can, but shouldn't be able to, buy a lot of house with that kinda money...

Oldwood's picture

Exploitation. An interesting term that implies our weaknesses and ignorance are being taken advantage of.

Maybe, just maybe, the answer lies with strength and knowledge, rather than ANOTHER gift from our oppressors.

FireBrander's picture

"our weaknesses and ignorance are being taken advantage of."

Always have, always will be...that is what the minimum wage is all about...protecting everyone from their "weaknesses and ignorance" from  "being taken advantage" by the PSYCHOPATHS at the top of our Society.

If America's CEO's weren't constrained by a "minimum wage", they'd go for sub $1 wages to ensure they could trade up to an 80,000 asft home next year.

Oldwood's picture

In a real economy businesses understand, as Henry Ford did, that their employees are also their customers and it does little good to keep them poor. And competition has always been the devise that kept them honest. I have no minimum wage or monopoly on my employees. I know fully that if I fail them, they will go elsewhere. Granted I only have five employees, so it's not like I own the industry either. But the point remains, a real, COMPETITIVE economy levels things out. That is what our government is SUPPOSED to do, but instead they are picking winners and losers, attempting to set wages which we have a long history of failures and DESTRUCTION. These CEO's making the big bucks are only retaining  exorbitant wealth because they lack competition, that GOVERNMENT has helped them create so many barriers to entry that they can effectively prevent competition....something our government is actually supposed to prevent...MONOPOLIES. Instead they create them.

Make competition easy. Make monopolies hard. everything else will work itself out, but there will ALWAYS BE LOSERS.

CrabbyR's picture

LOL...CEO wage increase cost 150 employees....Fractional lending has distorted the world for our entire life time...governments are broke, income tax is brutal paying the central banks...try to imagine not for profit bank and the financial relief we would all experience....there are always losers in a fractional lending system...built in for profit

 

besnook's picture

setting the minimum wage is the same thing as a union contract setting wages. unfortunately for the usa there has always been a war between labor and management. setting a minimum wage set a floor that levels the playing field for everyone, including business. isn't that why businesses cheat because they hire illegal aliens at below minimum wage.

the only real objection to raising the minimum wage is inflation, your utopian view of freedom notwithstanding.

 

Oldwood's picture

The war is a contrived one. Explain how EMPLOYMENT, the dependency upon an EMPLOYER is the the desired template for freedom and liberty? People gravitate to the notion of security, of having a JOB, rather than striving for self employment.

We find ourselves dependent upon entities and then DEMAND their compassion, be it a job, our healthcare industry or our government. Always operating from weakness, our liberty sold for convenience and security.

crossroaddemon's picture

I agree with you... anyone who is working for somebody else is enriching the parasite class with their labor and needs to rethink their life.

That said, we can't transition out of the present parasitical industrial wage slave economy all at once, and for awhile yet a large number of people are going to have to remain employed within it to survive. Now if you research carefully the history of industrialization you will learn an unpleasant truth: you have always had a choice between government intervention or poverty for the working class. There has never been a third option. So what do you propose?

Oldwood's picture

Eliminate all employer based benefits. Your paycheck is it. No vested retirements, no accumulated vacations, no healthcare, no taxes withheld from your paycheck, no employer contributed FICA. Your life is officially your own. Government has created every method imaginable to keep most people dependent upon their jobs. Set them free. Security provided by anyone other than yourself is a LIE. Make self employment an option for a change.

Imagine a government that was forced to chase down every citizen in the country for their taxes rather than forcing employers to be their tax collectors. Everything is about coercion. About making some choices "easier" for us than others, and trust me, it is the easy choices that have gotten us to where we are today. The hard choices get put off until another day, a day when they have become even harder.

Stinkytofu's picture

sure.....but who evaluates the evaluaters?

and who sets the wages of the wage setters?

EddieLomax's picture

When I was at university the computing department did an exercise where the students rated each others work.

It says something for the back stabbing type of people they were as everyone got poor marks.

However in the civil service I'm sure they're quick learners, civil servants earn big salaries for pushing paper around desks while the socialized medicine they preside over has nurses paid 40-50% less than in similar countries and top consultants share secretatires and sit in crappy offices with poor IT support.  And they only keep those nurses salaries down by importing in anything with a pulse, its a bonus if it can also speak English...

FireBrander's picture

Each state should set it's own "minimum wage"; the burger shops here are at $9+...so a jump to $12 would be a big deal. Scap the whole Federal Minimum and just let the States deal with it.

besnook's picture

i could agree with that given the different cost of living from state to state.if you are to have a minimum wage law that would be the best way to do it.

gregga777's picture

Long-term unemployment amongst yoots builds character.  It allows them to develop their skills in drug dealing, rock and bottle throwing at the police, and constructing Molotov cocktails and improvised explosive devices.  /sarc

Trucker Glock's picture

Bottle kids!

https://youtu.be/tLMbu8y8xAE

"What's wrong with parents these days?"

Bigly's picture

The robots are coming!

The robots are coming!

sinbad2's picture

Yes they are, so what are you going to do with the redundent humans?

They will probably just cut healthcare, to lower the life expectancy. They have managed to reduce life expectancy by a month, that obviously is not enough. Currently life expectancy is nearly 80 in the US, they are going to have to get that down to 50, if they intend to utilize robots.

 

OR you could also have a war, and kill all the young people, that way you could get rid of 2 generations of redundant humans.

With the reduced healthcare and military pays, the economy would boom.

MuffDiver69's picture

Not a big deal for D.C. like it would be in a state like nearby Maryland or Virginia. Most of these minimum wage jobs are done by illegals and prices in D.C. are artificially high in government land...Outside the cities fifteen bucks an hour to work a register is not gonna fly for many businesses....

Mini-Me's picture

The minimum wage is $0 when these people lose their jobs.

Oldwood's picture

The "real" minimum wage is the combined government entitlements bestowed upon the nonworking people in this country. And with each artificial input to our economy, the collateral damage is NOT just those losing their jobs but those remaining who find they have even more dependents piled upon their backs....the entitled. Minimum wage is a ruse when compared to EBT, section 8 housing, aid for dependent children, disability and countless others that we see add up to the equivalent of over $60k in some instances. $15/hr minimum? Pfft.

slightlyskeptical's picture

Of course this will happen. It is not bad in itself though. At $15 / hr you get better workers. You then need less of them. Meanwhile customers are getting better service and are happier.  But out of 167, 000 workers, you still have 165,000 making more money. Everyone working for minimum wage should be happy to be impacted by this.

Oldwood's picture

You should get a job with the government. Your hypothetical math skills are impressive.

Tachyon5321's picture

McDonalds is installing order kiosk that will eliminate 3 people per restaurants.

 

Being installed the new kiosk at 2228 New York Avenue, NE, Washington, D.C. The future is coming faster that anyone expected.

 

sinbad2's picture

Well of course McDonalds will do all it can to maximize profits. If it was legal to keep slaves they would.

Capitalism is about accumulating capital, the lower your expenses, the higher the profit(capital)

If Government had no regulations regarding capital endeavours, the companies would consume each other, to reduce competition, which reduces capital.

Like in Idiocracy, one company is all that is needed, to perfect capitalism.

Global Douche's picture

That shit hasn't worked here so far. Very few use the kiosks where I live, and I'm in the Amarillo market, amongst the first three which installed them. The biggest issue was the restaurant keeping the offerings updated (such as the infamous McRib being ordered through it, only to be told it's not presently available) and no orange juice? I had to order it from the front counter as their kiosks didn't have it on their lists!

Furthermore, they're not yet foolproof. I've still had an erroneous order through one. I'm awaiting Burger Flipper Robot to make it's debut here.

DrData02's picture

How about a maximum wage for CEOs? And jail time for bank CEOs.

Stan Smith's picture

Everyone one thinks Democrats want to raise the minimum wage to help their constituents.    I think those folks arent going be the ones get 15 dollar an hour jobs.     All those kids with Art History or whatever "Humanities Degree of the Week" are going to have their parents tell them to get out the basement, for 15 bucks an hour, you can work at McDonalds.

It's not going to be the folks you see protesting for it,  I can almost assure you of that.

Keeping poor people poor is how the Democrats roll.

sinbad2's picture

The trouble with slave like wages, is the slaves can't afford to consume. The service sector is 80% of US GDP, waiters mechanics carpenters and gardeners need to earn enough money to consume and stimulate the economy.

No consumption equals no US economy.

Trucker Glock's picture

Only 1,200 jobs lost by 2020?  I don't believe it.

crossroaddemon's picture

This is all bullshit. Have any of you had the cost/benefit analysis for automated fast food kiosks in your hands? I have.  The damn things would be cheaper than employees with wages below $4 an hour. They were baked into the cake before the $15 thing even came up... in fact the wage hike kerfluffle is just being used to blame the workers they were gonna replace anyway. 

It's funny... ZH readers seem to kinda want the 1960s back, but forget that a big part of that package was unskilled labor earning enough to live on. Minimum wage in 1965 was over $20 an hour in today's dollars. Working people drawing welfare shouldn't even be a thing.

Trucker Glock's picture

No one lived on fast food wages in the 60s.  High schoolers worked fast food for gas and dope money, some to save for college.  And the employment demographics were very different in the 60s.  There was a lot more semi-skilled and skilled labor.  We are no longer a manufacturing economy. 

The Fed has devalued the dollar, inflating prices, while wages haven't kept up.  When unskilled labor wages are more than a third of seasoned engineer wages, something is very wrong.

Unskilled labor aren't the only victims of Fed and .gov policies and theft.

Minimum wage hikes are not the answer.  Will I get $7 more per hour, also?

crossroaddemon's picture

You should, actually. Really the end goal ought to be getting inflation adjusted wages back to '60s levels across the board. Of course that will not happen.

sparkplug's picture

People did live on fast food wages back then and still do. Are you that out of touch?

Versengetorix's picture

The correlation between minimum wage hikes at job destruction was pretty much proven by Yale Brozen at U of Chicago in about 1962.  That's only 55 years to look at the impact and realize that straight line linear reasoning is not an avenue to comprehension of dynamic economic interactions.  But then when the cameras are on the likes of Nancy Pelosi.....and people like her get elected to positions of power and leadership, we are actually lucky.  Look how far we've come....the report refernced here came out of the local DC government and anyone who has spent any amount of time in DC understands that if they are beginning to connect the dots - anything might be possible.  It only took Galilao 230 years to get things turned around in celestial reasoning  and Nancy is growing old.

Oldwood's picture

We have seen these studies for years, but progressive politicians have NEVER allowed facts get in the way of their agenda. Government MUST be our sole supplier of our work, our pay, our security and our comprehension of threats as well as the simple notion of right and wrong. Freedom, liberty, the RIGHT of self determination, of making mistakes and paying the consequences, of working hard and smart to get ahead in this world, ARE NOT, part of the agenda. Dependency is BASED upon ignorance.....just the way they like us.

Just Produce's picture

These 1,200 jobs were producers.  Very few other DC jobs produce anything.  The entire city of DC should be shut down.  Don't even make it a museum.  Evacuate every last resident.

Move law enforcement and intelligence to Kansas.  

 

Every other job should be outsourced under competitively bid contracts.  

Just Produce's picture

These 1,200 jobs were producers.  Very few other DC jobs produce anything.  The entire city of DC should be shut down.  Don't even make it a museum.  Evacuate every last resident.

Move law enforcement and intelligence to Kansas.  

 

Every other job should be outsourced under competitively bid contracts.  

Just Produce's picture

These 1,200 jobs were producers.  Very few other DC jobs produce anything.  The entire city of DC should be shut down.  Don't even make it a museum.  Evacuate every last resident.

Move law enforcement and intelligence to Kansas.  

 

Every other job should be outsourced under competitively bid contracts.  

CrankyCurmudgeon's picture

I understand that conservatives are arithmetically challenged. So here are some numbers from the article: 150,000 minimum wage jobs in DC. Less than 1% of them lost. Yes 1200 is less than 1% of 150,000. You should've learned that in 5th grade.

 

Can any droid from the Mises Institute tell me with a straight face. That handing say $5/hour to 150,000 people in DC will only create 1200 jobs? I didn't think so.

just the tip's picture

just for grins, would you being in the less that 1% change your perspective?

a follow up if i may?   is "arithmetically" a word?

perkunas's picture

No one ever, seems to factor in the cost of poverty, on the tax payer. Companys like walmart make billions, while the emplyees are on food stamps, or living on the street. What's the cost of poor health, brought on by poverty unable to afford heath care. Not to mention most jobs are small buisnes, and poor people spend money localy, boosting the small buisneses bottom line.

oncemore's picture

This helps to eliminate "Mexican" jobs.

VWAndy's picture

 New study = Quick books

  Around here we just call it math.

Sledge-hammer's picture
Sledge-hammer (not verified) Mar 20, 2017 1:25 AM

No one looks beyond the superficial or asks the relevant questions such as to why there are so many minimum wage jobs and so many people who must work minimum wage jobs.  If our corrupt (((politicos/gov't))) and corrupt, venal (((99%ers))) had not ruthlessly and treacherously shipped tens of millions of American jobs overseas and trashed/gutted our economy for (((their))) benefit, maybe there would not be so many minimum wage jobs and thirty-something year old people would not be working minimum wage jobs. 

Global Douche's picture

If government jobs didn't pay so cushy, if government lobbyists weren't paid so lavishly, if government contractors weren't given so, so, SO MUCH $$ in overruns and everything else which has been allowed to fester beyond control (and which Trump is trying in vain to rein in) then maybe real estate and costs of living in the D.C. Metro and Inner Beltway would not require a $15 minimum wage.

Just Sayin'

Silver Savior's picture

It does not matter. Jobs are getting automated and don't pay anything anyway. Basic income checks in the mail would make my day. No more slavetard.

911bodysnatchers322's picture

So we're talking public sector jobs right?   Ehhhh maybe it's a good exchange, the unemployment sector gets new hires and the taxpayer sector gets increased happiness measures