Spring Break
Letter to the Editor
Issue date: 11/25/08 Section: Perspectives
To the editor of The Michigan Journal,
As unemployment reached its highest point in 14 years during the month of October, legislators' prior decision to substantially increase the minimum wage during good economic times is now yielding troubling results (On the job: seasonal work looking scarce this year, November 18). Decades of economic research predicted that there would be an increase in job loss following minimum wage hikes. With demand for their products and services dropping dramatically, employers can't raise prices and are responding to higher labor costs by shifting their hiring focus to better skilled applicants, automated services or cutting back on customer service. Some McDonald's stores in Illinois are testing kiosks for ordering and automated cooking systems that replace minimum wage workers. Legislators should take note that the unintended consequence of their past minimum wage hikes is job loss for the least skilled workers at a time when they need help the most. A job at the previous minimum wage is much better than none at a higher rate.
Sincerely,
Tim Miller
Employment Policies Institute
Washington, D.C.
202-463-7650
miller@epionline.org
As unemployment reached its highest point in 14 years during the month of October, legislators' prior decision to substantially increase the minimum wage during good economic times is now yielding troubling results (On the job: seasonal work looking scarce this year, November 18). Decades of economic research predicted that there would be an increase in job loss following minimum wage hikes. With demand for their products and services dropping dramatically, employers can't raise prices and are responding to higher labor costs by shifting their hiring focus to better skilled applicants, automated services or cutting back on customer service. Some McDonald's stores in Illinois are testing kiosks for ordering and automated cooking systems that replace minimum wage workers. Legislators should take note that the unintended consequence of their past minimum wage hikes is job loss for the least skilled workers at a time when they need help the most. A job at the previous minimum wage is much better than none at a higher rate.
Sincerely,
Tim Miller
Employment Policies Institute
Washington, D.C.
202-463-7650
miller@epionline.org
Be the first to comment on this story