Collins Report

By Kevin “Coach” Collins

When a bill to raise the federal minimum wage is under consideration conservatives argue it will lead to unemployment especially among teenagers trying to enter the workforce for the first time. Liberals always scoffed at this and vote for these increases anyway.

Soon after the effective date of these increases teenage unemployment increases and stays higher than previous levels. Liberals say teen employment rates are not accurate measures of the results of these increases and the issue disappears from any mention in the media.

Teenage unemployment is a straw man non issue and liberals know this, but with today’s high unemployment the issue demands a reexamination.

Comparing unemployment numbers to state minimum wage levels shows a strong link between the two. The national unemployment rate is now at 8.5%, higher than it has been since 1983 at the peak of the damage done by Jimmy Carter.

Cause and effect

Is there a cause and effect relationship between higher minimum wage levels and higher over all unemployment in the states that mandate them?

It would seem so.

The 30 states reporting unemployment rates BELOW the national 8.5% have an average mandated minimum wage of $6.53. These same states have unemployment rates of 6.58% almost 2 points UNDER the national average.

The 21 states (plus D.C.) reporting MORE than 8.5 % unemployment, average 9.7%. They demand a $7.05 minimum wage of their employers.

Generous with our money

The 6 states demanding the highest average minimum wage of $9.25 also average 9.9% unemployment.

California has an unemployment rate of 11.2 and “generously” forces employers to pay at least $8.00 an hour.

Oregon is suffering 12.1% unemployment but prides itself on its $8.40 minimum wage.

The facts are clear: higher minimum wages bring higher unemployment, not always but often enough to identify solid connections.

Rethinking things

N.B. Oregon’s legislature is considering a bill to roll back its minimum wage law. Passed in 2002 when a Republican government was keeping inflation down and employment up, Oregon’s minimum wage was tied to the national level of inflation. That’s not working out so well under Obama’s Marxist regime. Oregon knows it has to bail out of this insanity before the roof falls in and the state is bankrupted. Oregon’s Legislature knows the inflation that is coming under Obama will be ruinous.

Comments on this or any other Collins Report essay can be sent to kcoachc “at” gmail.com