Michigan: Costly Wage Law Hurts State Economy

By The Detroit News

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According to The Detroit News:

In the midst of criminal proceedings against Detroit Mayor Kwame Kilpatrick, voters shouldn't stop asking politicians to answer for the criminally bad state of Michigan's economy. Their minimum wage increases in recent years have killed jobs for those most in need of work.

Here's a puzzler to ask your representative that might get him to see the facts: What do Michigan, Ohio, and Rhode Island have in common?

Answer: They all have a higher percentage of unionized workers than the national average, have dramatically increased the minimum wage between 2005 and 2008, and are in the top 10 for unemployment in 2008.

That's no coincidence. There's a twisted logic in unions pushing regulations, like the minimum wage, that strangle businesses and kill jobs.

Unions promote policies like minimum wage increases because it limits the alternatives to high-priced union labor. Of course, anti-growth policies eventually kill union jobs too, but politics is a short-sighted game. In states like Michigan, Ohio and Rhode Island, unions have been getting their way for decades.

States raised their minimum wage rates about 19 percent on average from 2005 to 2008. In Michigan, however, the minimum wage went up a stunning 40 percent in that time. Ohio increased its minimum wage almost 36 percent, and Rhode Island increased it 44 percent...click to continue.

 

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