From Small Business Trends:
It’s a cruel irony in that boosting the minimum wage will mean more impoverished people. As Federal Reserve Bank of Cleveland economist Mark Schweitzer and University of California [Irvine] economist David Neumark have found, businesses often cut poor workers first when an increase in the minimum wage makes hiring as many workers uneconomical. Because those workers often have the least long term job potential. As a result, boosting the minimum wage means poor adults being passed over for jobs and ending up stuck in poverty.

For the full story, please visit http://smallbiztrends.com/2013/11/raising-the-minimum-wage-obama-proposa....
 

 

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