by Mitch Kokai
Senior Political Analyst, John Locke Foundation
Bill McMorris reports for the Washington Free Beacon on the likely economic impact of Democratic presidential front-runner Hillary Clinton’s proposed increase in the government-mandated minimum wage.
Hillary Clinton’s minimum wage hike could cut nearly 800,000 jobs with people at the bottom end of the pay scale suffering the steepest job losses, according to a study by two leading economists.
The Democratic frontrunner has said that she supports a $12 hourly wage and reiterated that position at Saturday’s Democratic debate because “that is what the Democrats in the Senate have put forward.”
Sen. Patty Murray (D., Wash.) introduced the $12 wage as the Raise the Wage Act in March. An analysis conducted by economists William E. Even of Miami University and David Macpherson from Trinity University found that the bill would eliminate 770,000 jobs. Nearly 85 percent of the estimated job losses will come from those earning less than $100,000 each year.
“Presidential primary candidate Hillary Clinton has argued for a minimum wage increase as part of her policy platform to boost the middle class. But this analysis shows that those with household incomes between $35,000 and up to $100,000 would bear a large portion (43%) of the job loss from this higher minimum wage,” the analysis says.
The middle class will not be the only earners hurt by this policy. More than 40 percent of the job losses would come at the expense of those earning less than $35,000 per year.