Seattle Repeals Gravity

From Powerline. Well, not quite, but nearly that silly.

You know how liberals like to attach taxes on cigarettes so we’ll buy fewer of them, and on alcohol so we’ll drink less, etc? Funny, though, how the basic lesson of supply and demand and price sensitivity falls by the wayside when it comes to the minimum wage.

The Washington Post reports today on the results of the mandated minimum wage hikes in Seattle:

A ‘very credible’ new study on Seattle’s $15 minimum wage has bad news for liberals

By Max Ehrenfreunde

When Seattle officials voted three years ago to incrementally boost the city’s minimum wage up to $15 an hour, they’d hoped to improve the lives of low-income workers. Yet according to a major new study that could force economists to reassess past research on the issue, the hike has had the opposite effect.

The city is gradually increasing the hourly minimum to $15 over several years. Already, though, some employers have not been able to afford the increased minimums. They’ve cut their payrolls, putting off new hiring, reducing hours or letting their workers go, the study found.

The costs to low-wage workers in Seattle outweighed the benefits by a ratio of three to one, according to the study, conducted by a group of economists at the University of Washington who were commissioned by the city. The study, published as a working paper Monday by the National Bureau of Economic Research, has not yet been peer reviewed.

On the whole, the study estimates, the average low-wage worker in the city lost $125 a month because of the hike in the minimum.

Congratulations Seattle—you’ve managed to lower wages by $1,500 a year for the people who can least afford it. But I’m sure you feel good about how you’re fighting again inequality.

About that subtle little dig about peer review (which is mostly nonsense of a different color these days).

“This strikes me as a study that is likely to influence people,” said David Autor, an economist at the Massachusetts Institute of Technology who was not involved in the research. He called the work “very credible” and “sufficiently compelling in its design and statistical power that it can change minds.”

David Autor is one of the leading figures in America in this field. Good enough for me, particularly since NBER itslef is the gold standard in the field. Besided we all said this before it happened.

If I was a retail merchant in the Emerald City, well, I’d be Sleepless in Seattle and not in the good way.


In other related news, Andrew Bolt writes that:

Here in Australia, the Greens Party keep claiming coal is dead, just like they predicted runaway warming, permanent drought and draining dams.

The Greens said coal mining was dead:

The world is moving away from coal. A report released by the Institute for Energy Economics and Financial Analysis finds that the global market for Australian thermal coal has entered “structural decline”, with prices falling 70% since 2009.

Wrong. Coal is roaring ahead:

The world’s biggest coal users — China, the United States and India — have boosted coal mining in 2017, in an abrupt departure from last year’s record global decline for the heavily polluting fuel and a setback to efforts to rein in climate change emissions.

Mining data reviewed by The Associated Press show that production through May is up by at least 121 million tons, or 6 percent, for the three countries compared to the same period last year. The change is most dramatic in the U.S., where coal mining rose 19 percent in the first five months of the year, according to U.S. Department of Energy data.

Coal’s fortunes had appeared to hit a new low less than two weeks ago, when British energy company BP reported that tonnage mined worldwide fell 6.5 percent in 2016, the largest drop on record. China and the U.S. accounted for almost all the decline, while India showed a slight increase.

The reasons for this year’s turnaround include policy shifts in China, changes in U.S. energy markets and India’s continued push to provide electricity to more of its poor, industry experts said.

The Greens would support providing electricity to the poor, wouldn’t they?

Reader Mark M rounds up the latest evidence for the climate catastrophe we were warned would affect even food supplies:

South Africa: Silos ready for record maize harvest

As farmers in SA get down to harvesting a record maize crop, operators of grain storage facilities say there is enough space to accommodate the bumper haul.

Maize is, of course, to us Americans, corn. Good on them although I must say if we ever had a corn harvest where we had enough space to store it – well, it would be a very poor year, indeed. We’re lucky if we have enough to store the food grade corn. Also:

Australia: “Australian farmers’ record breaking season confirmed at $62.8 billion: ABARES

ABARES said even with the dip, the figure is still 9 per cent higher than the five-year average to 2015-16.

USA: California sets cherry record; big Washington crop rolling

Exactly where is this catastrophe the Greens keep seeing?

Not a lot of point in adding much to any of these, people that read around here tend to be common sense types, who understand that if one (especially one’s government) gets out of the way, amazing things will happen. And so they are.

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About NEO
Lineman, Electrician, Industrial Control technician, Staking Engineer, Inspector, Quality Assurance Manager, Chief Operations Officer

5 Responses to Seattle Repeals Gravity

  1. Reblogged this on Boudica2015.

    Like

  2. the unit says:

    Yeah, and all the progressives are floating up looking to ride Pegasus. Of course it has to be one with cloven hooves like their favorite sex toy…a goat. Me thinks they gonna meet a thunderbolt. 🙂

    Liked by 1 person

    • NEO says:

      Indeed so. 🙂

      Liked by 1 person

  3. Pingback: The Weekly Headlines – My Daily Musing

  4. Pingback: The Weekly Headlines – Br Andrew's Muses

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