Living Wage May Not Be the Solution

Have you heard the news? A study issued by the Employment Policies Institute says the so-called "living wage", A.K.A. a higher minimum wage, may be more of a hindrance than a help. The study has found that prices tend to surge as unemployment rises in municipalities that require employers to pay more than the federal or state minimum wages.

NO KIDDING???

Robert Strauss, an economics professor at Carnegie-Mellon University and the guy who conducted the study for the Employment Policies Institute said, "Municipalities that adopt living wage ordinances holding various things constant, have on average ten percent lower employment after adoption."

In case you don't get it, this means that employers have to let employees go in order to pay the other employees the mandatory higher wage. This means that unemployment goes up.

Strauss admitted that he was surprised by the outcome of his study. Now if only congress can figure it out.