I have three laughs this week based on some of the biggest stories.
The first is related to the Seattle Minimum Wage Study. This study found evidence that increased minimum wage leads to significant job losses. And, as expected, there has been overwhelming push back (perhaps an all out assault is a more accurate phrase).
However, the results should not be too surprising. As I’ve written about many times now, small, consistent increases in the minimum wage is the best solution to avoid shocks to the economy. Businesses can handle 2%-5% wage increases. Not 30%-40%. The large increases that are depicted in the comic below (and in the Seattle Minimum Wage Study) can cause small businesses to lay people off or close up altogether.
And of course, I have to point out how appalling and disastrous the Senate healthcare bill is again.
Setting aside the CBO’s forecast that 22 million more people will be uninsured… the healthcare bill supporters keep missing the fact that their premiums will increase (some will spike) under the new bill. I wrote in detail about that here. Put more bluntly, the 50+ age group is not a low risk group and will likely see their premiums and deductibles increase. Not a great combination.
And for the record, Obamacare took 14 months from start to finish.