Thursday, March 11, 2010

Democrat’s First Major Move to Create Jobs Resulted in 500,000 Lost Jobs

According to Casey B. Mulligan, University of Chicago professor of economics, the minimum wage increase passed by Democrats last year resulted in 500,000 fewer part-time jobs.

Two months ago, I noted how national, seasonally adjusted part-time employment increased almost 2.5 million during this recession, but then it peaked in July 2009 and headed sharply downward. I thought that it was no coincidence that the federal minimum hourly wage was raised, on July 24, 2009, from $6.55 to $7.25 — especially since the inflation-adjusted federal minimum wage had already gotten pretty high.

I estimated that part-time employment would have been about 500,000 greater in the last couple of months of the year if it hadn’t been for that last increase in the federal minimum. Many of us view 500,000 job losses as a lot because they would, for example, make a sizable dent in the jobs that the White House claimed last year that it would create with its $787 billion stimulus law.

With all the evidence mounting against Democrat job proposals, one can’t help but wonder if they aren’t purposefully and systematically damaging America’s economy.

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