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.



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. 



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.



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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buckstopshere's picture

When the bankers devalue the dollar at a minimum of 2% per year as official Fed policy, a minimum wage is meaningless.

The bankers decide how much the wages will be in the US and around the world.

FireBrander's picture

CEO Pay cannot be more than 30x the lowest paid employee...problem solved.


Shocker's picture

Forcing regulations on businesses... never really spurs economic growth

Layoff List:


FireBrander's picture

History of CEO to Worker pay:

1950 was 20:1

1980 was 42:1

2000 was 120:1

2013 was 354:1

In which era did the "average worker" not need an ARTIFICIALLY HIGH minimum wage?

100's of millions into the pockets of the executives (often after bankrupting the company or commiting a crime) and crumbs to the employees whom are forced to turn to Government for "welfare"...there's yer problem...

Shocker's picture

No one disagrees that the system is out of wack

FireBrander's picture

...and so is the most often touted "solution"...$15 min...that's not the solution...that's can kicking.

kavlar's picture
kavlar (not verified) FireBrander Mar 19, 2017 11:02 PM

No matter what American politicians do, the American CURSE is marching on.

Mano-A-Mano's picture
Mano-A-Mano (not verified) kavlar Mar 19, 2017 11:03 PM

I've already moved before SHTF. Do likewise.

CheapBastard's picture

It may cost low wage cheap labor jobs, but it will create a huge demand for Robots!

cue in cue's picture
cue in cue (not verified) CheapBastard Mar 20, 2017 8:50 AM

I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do...

Beam Me Up Scotty's picture

How much money was paid, and how much per hour did these turd counters make to produce this worthless piece of paper report??

FireBrander's picture

The CEO of Papa Johns Pizza lives in a 40,000 sqft house (with a 6000sqft guest house)...thanks to the fact that Medicaid, SNAP, Section 8, etc., are picking up a large part of his employee costs...

buckstopshere's picture

End the welfare.

The employees will badger the CEO to increase their pay.

FireBrander's picture

The welfare system isn't for the poor; that just a cover focuses the "hate" on the "poor" instead of the executives and the politicians. Every dime the welfare system gives to the "poor", is instantly transfered to corporate America.

"End Welfare" and you collapse Coporate Americas profits and destroy the business model...$14 BILLION a year in SNAP money goes straight into WalMarts pockets...the other $66 BILLION in SNAP goes to the rest of Corporate America.

Oldwood's picture

Government is a wealth redistribution machine. It is the game that both those at the top and the bottom seem to have figured out. it those in the middle still convinced they can get ahead by working harder that are the fools. And THIS is what is killing our society, for when you make theft and gambling the only path to prosperity, the world is doomed.

EddieLomax's picture

Now that's the real deal.

Its the same in the UK, we imported in 400 Eastern Europeans to make sandwiches for minimum wage jobs in just one factory last year.  Just taking their salary into account makes it a plus for the UK, take into account the added burden to the welfare state and its a solid loss.  

Don't stop there, add in the long time liability they represent in healthcare and pensions and we just imported in millions of debt, all to be loaded onto the next generation, and they wonder why each generation gets a worse deal.

Immigration has been only about one thing throughout its history, from the medieval times to present day its all about keeping wages down, whenever immigration is restricted the majority get to see their living standards increase while the minority at the top have a little less.

buckstopshere's picture

A CEO who gets paid a $1 salary but receives unrealized capital gains can thwart that payment system.

FireBrander's picture

Total compensation in excess of the 30x the lowest paid employee is taxed at 99%...loophole closed.

buckstopshere's picture

Difficult to enforce.

Too much costly government interference.

A simpler plan is payment in gold and stocks and stock options if publicly traded.

Oldwood's picture

More genius "one size fits all" schemes.

Simply set real rules that everyone can understand without a high dollar lawyer or lobbyist. Tax ALL earnings the same and tax THEFT 100%. We are not that stupid. Everyone knows what fraud and theft are but we have allowed the "rule makers" to complicate and add exceptions to every rule that makes law enforcement impossible for those at the top. The big lie is that all income above a certain amount is somehow ill gotten or theft, and that is a LIE. We know theft, but instead we fall for the same shit that they always manipulate us with...not justice but retribution and envy.

FireBrander's picture

"income above a certain amount" is too often "Illgotten and Theft".

Time and again, "employers" use the welfare system to subsidise total employee compensation.

Hiring illegals or only offering part time, no benefit jobs, shift employee costs onto the backs of taxpayers.

The capitalist profits go to the executives, while the social costs are picked up by the taxpayers.

jmack's picture

another fix is just dont work for assholes that wont pay you a living wage.


     work for them for 6 months, learn how to make a pizza, or a burger, and then go into business for yourself.  dont like fast food.  then do the same thing mowing yards. or constuction, or a million other things....


   Oh thats right, most of these people are excuse makers who never did more than the minimum in school, if they even completed it, and certainly are not going to have any skills or ambition to do anything more than beg politicians to make them pay me more...  fuck em.


TwelveOhOne's picture

It's interesting to me that there's so much discussion about "aspiring to be the minimum."

As I said a few days ago, if $15/hr is good, $150/hr is GREAT!  (Long Cassandra.)

CPL's picture

Doesn't actually matter what they are set at, the value is meaningless as long as the central bank keeps printing money from thin air for no cost or loss.  They could lay off everyone tomorrow and the stock market ticker wouldn't react because employment doesn't measure an economy any more than production of goods do.

It is interesting to watch them pretend they know what they are doing though.  They very stupid but people pay good money to watch the planet that failed and learn how not to fail from professional fuckups.  Earth is famous because of it, you are all the ass end of jokes everywhere.  Most would be ashamed, but you bunch celebrate it.  It is phenomenal.

Keep up the good work with fucking up.  Everybody is counting on you guys as the bag holder.  It's going to help keep lots of people's hands clean.

Oldwood's picture

Oh, the GIFTS of government. They will mandate a raise while making everything we buy rise in cost even faster. Maybe they will even legalize pot so we care even less that we are all rats on a sinking ship.

Oh, the GIFTS......may they just keep coming.

buckstopshere's picture

When the bankers target 2% inflation but really give us 9% or 10% inflation, what they are really doing is taking a certain percentage of your buying power away from you.

That is what inflation is. The dollar doesn't just lose its value. That lost purchasing power goes to the bankers. From the bankers it goes to their preferred clients. Their preferred clients are the ones with the best credit scores. They usually own large amounts of assets already. Those with assets then are able to acquire more assets.

It is a system of theft.

Thou shalt not steal.

When the dollar is the world's reserve currency, the theft goes worldwide. The buying power of everyone transacting and saving in dollars gets confiscated by the bankers, year after year. Like parasites.

If the inflation is too high and too obvious, the system breaks down. The people revolt. The bankers die. So the bankers keep the inflation just low enough to evade detection.

MK13's picture

So out of 150k service jobs they anticipate loss of 1.2k, or less than 1%?

BS meter off the charts if $15/hour wages are 40% higher than current. If we are talking same salary pool, you should see 40% reduction in workforce to compensate.

This is a false libtard sponsored release.

JuliaS's picture

Translation: $15 wage will generate 1200 democratic votes.

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 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 $ 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!

"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.