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Posted: Wednesday, 29 January 2014 7:32AM

LSU Professor: Minimum wage hike would kill jobs



President Obama made the case for raising the minimum wage from $7.25 an hour in last night's State of the Union address. LSU Economics Professor, Robert Newman says the President won't get the desired results he is seeking because businesses will actually lay off workers.
 
"This is an example of feel good legislation. Most people want to 'do good' when they talk about minimum wage and it makes them feel good if they can do it."

The President will sign an executive order that brings new federal contract workers wages up to ten dollars and ten cents an hour, but raising the minimum wage for all Americans is up to lawmakers.  Newman says it's not a good idea.

"If they're trying to improve the lot of those who are at the low end of the economic ladder, this is a bad policy to do it."

Newman says if congress goes along Obama's call to raise the minimum wage, businesses will cut the number of jobs to pay for the higher minimum wage.

"This is not something that's going to help the individuals who are the target of this higher minimum wage (effort), so it's going to result in fewer jobs for low skilled workers."
 
Congress currently does have a bill to raise the minimum wage to ten dollars and ten cents, but it would only pass if enough lawmakers supported it.

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Topics : LaborPoliticsSocial Issues
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