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        <title><![CDATA[Minimum Wage Will Make Recovery Slow Down]]></title>
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        <lastBuildDate>Thu, 30 Apr 2020 17:34:37 +0000</lastBuildDate>
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            <media:title type="html">Minimum Wage Will Make Recovery Slow Down</media:title>
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        <content:encoded><![CDATA[<p>COVID-19
 is wreaking havoc on American jobs. State shutdowns and social 
distancing have resulted in 26 million people being laid off and 
furloughed.</p><p>Policymakers in some states are starting to loosen business 
restrictions and are hoping for a&nbsp;strong jobs recovery. But a&nbsp;quick 
rebound in jobs will be undermined by government policies. The federal 
government has expanded unemployment benefits, which will discourage job
 seeking.</p><p>And many state governments impose high minimum wages that will 
deter cash‐​strapped businesses from hiring. The federal minimum wage is
 $7.25 per hour, but 29 states impose higher minimums. Some cities have 
even higher wage floors, such as New York City at $15 per hour.</p><p>Minimum wage laws create a&nbsp;barrier to job opportunities for 
lower‐​skilled workers. Today’s recession centers on industries that 
employ millions of such workers, making minimum wage laws more damaging 
than usual. Businesses suffering from lower revenues, higher debt, and 
more uncertainly won’t be able to afford the wages they used to pay.</p><p>Ryan Bourne and I&nbsp;examine the economic crisis and minimum wages <a href="https://thehill.com/blogs/congress-blog/economy-budget/495152-economic-recovery-and-minimum-wages">in a&nbsp;new op‐​ed at <em>The Hill</em></a>.</p><p>The chart below shows the per‐​hour minimum wage rates by 
state. The rate is either the federal rate or the state rate if it is 
higher than the federal one, which is the case <a href="https://www.dol.gov/agencies/whd/mw-consolidated">in 29 states</a>.</p><p>Dozens of local governments—in Arizona, California, Colorado, 
Illinois, Minnesota, Maryland, New Mexico, and Washington state—impose 
their <a href="http://laborcenter.berkeley.edu/minimum-wage-living-wage-resources/inventory-of-us-city-and-county-minimum-wage-ordinances/">own rates</a> that are higher than the state rates. Local minimum wages include: 
Chicago ($13.00), Denver ($12.85), Los Angeles ($13.25), San Jose 
($15.25), San Francisco ($15.59), and Seattle ($15.75).</p><p>State and local policymakers should revisit their recent and 
scheduled minimum wage increases because the mandates will kill job 
opportunities as the economy struggles to rebound. News <a href="https://news.bloomberglaw.com/daily-labor-report/businesses-push-to-delay-minimum-wage-hikes-secured-by-democrats">reports</a> indicate a&nbsp;rethinking of scheduled increases in some places.</p><p>More on minimum wages <a href="https://www.downsizinggovernment.org/labor/negative-effects-minimum-wage-laws">here</a>, <a href="https://www.cato.org/publications/economic-policy-brief/bad-economic-justifications-minimum-wage-hikes">here</a>, and <a href="https://thehill.com/blogs/congress-blog/economy-budget/495152-economic-recovery-and-minimum-wages">here</a>.</p><figure class="wp-block-image"><noscript><img src="https://www.cato.org/sites/cato.org/files/styles/pubs/public/2020-04/min%20wage%20by%20state.png?itok=zvS0SxCQ" alt="w"/></noscript><img class="lazyload" src='data:image/svg+xml,%3Csvg%20xmlns=%22http://www.w3.org/2000/svg%22%20viewBox=%220%200%20210%20140%22%3E%3C/svg%3E' data-src="https://www.cato.org/sites/cato.org/files/styles/pubs/public/2020-04/min%20wage%20by%20state.png?itok=zvS0SxCQ" alt="w"/></figure>]]></content:encoded>
                <dc:creator><![CDATA[GAGmen]]></dc:creator>
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