An unintended consequence of minimum wage hikes: more crime - AEI
If it generates more unemployment it will generate more crime.
More below the fold.
"The direct and immediate consequences of a higher wage floor on the entry-level job market are well known: fewer jobs for fewer people. Less discussed are the longer-term adverse outcomes for young people who can no longer find work at artificially high wages. If delegates to the Democratic convention in Philadelphia this week need a striking example of why a 107% increase in the federal minimum wage to $15 an hour is a bad idea, they need only travel a few miles north of the city’s convention center on Broad Street.
In the heart of North Philadelphia—represented by ZIP Codes 19121, 19122, 19132 and 19133—the unemployment rate for teenagers averages 42%, according to 2014 data (most recent available) from the Census Bureau’s American Community Survey. The employment rate for teens residing in these ZIP Codes is an astonishingly low 14%—only one in seven has a job. (Nationwide, roughly one in three teens is employed.) Young adults in North Philadelphia ages 20 to 24 don’t fare much better: Their jobless rate averages 28%.
The city’s north side faces these crisis-level rates of youth joblessness with a starting wage—$7.25 an hour. If anything, the current minimum wage is too high, given the large numbers of unemployed youths who can’t find a job. The consequences of more than doubling it to $15 an hour would be disastrous."
Drug dealing awaits for the entrepreneurial, and it is highly lucrative, albeit dangerous. What a dandy idea, drive out jobs, force many onto welfare, force some poor blacks into drug crime, imprision them, and make the lot voters to your cause. Lather, rinse, repeat, and claim the mantle of champion of the black.
This couldn't actually happen could it?