Young Black Men are First to Go with Minimum Wage Hike

“for each 10 percent increase in the federal or state minimum wage employment for young Black males decreased 6.5 percent.”

With the fight for 15 gaining steam across the country we already are seeing the consequences in Seattle. So far about 5000 jobs have been lost and the workers that can least afford it have taken a $125 a month pay cut. What the popular articles don’t talk about is who is hurt the most by these consequences? The data is in: Black teens.

…a report found that for each 10 percent increase in the federal or state minimum wage employment for young Black males decreased 6.5 percent. By contrast, after the same wage boost, employment for white and Hispanic males fell respectively just 2.5 percent and 1.2 percent.

BET News 

The reason has got to be racism right? Wrong. Even BET doesn’t claim that. The reason is black teens dominated fields such as fast food and service industry which are the most affected by minimum wage hikes. The politically popular move to increase the minimum wage hurt the Black community the most. Boy has it been hurt. Up  to 50% of young black men in Chicago are literally doing nothing. They’re not in school or working. It’s 20% for young Hispanic men.  This democratic strong hold has done everything it can to strangle business and drive out the very jobs that these young men do.

The left is too smart to understand simple economics

If you’re an employer the reason you hire employees is to make a profit off of their labor. That means their labor has to cost less than you earn from it. When you raise the wage rate it makes it less and less profitable to hire someone.  If you had a choice over a college grad with a useless degree in Gender Studies but still has a degree or high school drop out with a criminal record and spotty work history at best who would you choose? Minimum wage crowds out young black men because it forces them to compete with more educated, older, better established people (including other blacks).  The situation is worse for gay Blacks as the Williams Institute (a liberal think tank) found that unemployment for LGBT blacks was considerably higher than their heterosexual counterparts.

Everyone understands that except for the leftist elites. They’re too smart to get that anytime you make something more expensive people will buy less of it. That’s why you see way more Hondas than Ferrarris on the road. Even something with a demand curve as inelastic as gasoline. When gas hit $5 a gallon public transit use spiked in the US.  If labor is really exempt from this economic law as the left claims it is then how come most middle class families no longer have maids? Why do movie theaters no longer have ushers or elevators have human operators? Automation is expensive and requires a huge upfront investment. That must mean the businessmen that do it have concluded that the high upfront cost is worth the labor savings.

Finally an anecdote. I live in the Philippines. There’s a McDonalds (or MacDo as they call it here) near me that’s open 24 hours and employs about 100 workers in a single restaurant. Yes 100 workers! An American McDonalds employs about 30 depending upon the traffic.

But yeah  minimum wage doesn’t lead to less jobs…

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