Press Release

Minimum Wage Mandates Tied to Unemployment

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Minimum Wage Mandates Tied to Unemployment 

(Washington, D.C.) - A new study by the American Enterprise Institute (AEI) finds empirical evidence that tying the minimum wage to adjust for inflation would lead to higher unemployment rates than the intermittent changes enacted through legislation. The AEI findings can be considered along with the research of the non-partisan Congressional Budget Office (CBO), which finds that while some workers would receive higher pay with a higher federal mandate, jobs for many low-wage workers would probably be eliminated by such a change. In either case, government wage mandates inevitably cause unemployment, but tying a minimum wage increase to inflation accelerates the negative effect. The impact of job losses associated with a minimum wage increase would be particularly severe for Hispanic immigrants, who tend to be concentrated in low-wage occupations. 

Daniel Garza, Executive Director of The LIBRE Initiative, released the following statement:

One of the most painful effects of a weak economy has been wages that just aren’t growing. American families deserve better. But more government mandates weaken the economy further, and are just not the best option. The impact of a minimum wage mandated increase would be particularly severe for Hispanic immigrants, who tend to be concentrated in low-wage occupations.We will see wages increase naturally through real, private-sector led economic growth — something too many in Washington have given up on

History has shown us that when government steps back, businesses grown and with them, wages. Losing faith in the dynamic free market means losing faith in the American people - in American workers and entrepreneurs. Let’s look to policies that remove burdensome regulations and untie the hands of business owners instead of looking to government to fix a problem they caused.

For Interviews with a LIBRE representative, please contact Brian Faughnan, 703-678-4581 or Josh Rivera, 202-763-4428

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