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Minimum Wage Hike will do More Harm than Good

Minimum Wage Hike will do More Harm than Good

Washington Should Focus on Economic Growth and Job Creation – not More Regulation

(Washington, D.C.) – In recent weeks activists from unions and other groups have organized a series of protests designed to bolster efforts to raise the federal minimum wage. This campaign comes at a time of extremely weak economic growth, when young people in particular are having a hard time finding work. Increasing the minimum wage generally makes it harder for young and unskilled workers to find jobs. According to a recent Gallup survey , fewer than 44 percent of 18-29 year olds are working full time. The Hispanic unemployment rate actually increased in the most recent jobs report – to 9.4 percent, which is two points higher than the national rate, and Hispanic youth unemployment is at a crippling 30.9%.

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

"Proposals to raise the minimum wage are appealing because they seem so simple – but are far from it. The fact is that excessive government regulations are already killing jobs. People in every age group and level of seniority are giving up looking for work because this weak economy is creating hardly any jobs. When it comes to entry-level positions, employers are increasingly turning to self-service checkouts and other automation because regulations under the Affordable Care Act and other laws make it more costly to hire people. Putting new mandates on small businesses isn't going to increase hiring. It's going to reduce it. These laws disproportionately hurt minority communities – the very ones they are supposed to help. Instead, millions of Americans will benefit if we lift the costly federal rules that are destroying job opportunities. We should be allowing the private sector to do what it does best – spur growth and create jobs."

A widely-cited survey  of studies on the effects of minimum wage hikes finds that "almost all" of the most credible studies point to negative employment effects and a sizable majority find negative employment effects as well.

For interviews with a LIBRE representative, please contact: Judy Pino, 202-578-6424 or Brian Faughnan, 571-257-3309.