Michigan politicians want higher unemployment in their state

The Michigan legislature has passed a new law raising the state minimum wage to $9.25 an hour by 2018, and the governor has signed it.

The state’s hourly minimum wage will increase in phases from $7.40 until it reaches $9.25 in 2018.

The legislature passed the bill Tuesday and Republican Gov. Rick Snyder signed it into law.

“I commend my partners in the Legislature for finding common ground on a bill that will help Michigan workers and protect our state’s growing economy,” said Snyder.

The law will also tie the minimum wage to inflation, so that it will continue to gradually increase after 2018.

Oy, the lack of knowledge of economics, it hurts.  Not only did they pass this law, they indexed the new minimum wage to inflation.  So unemployment among teenagers and the unskilled laborers will increase every year.

Minimum wage increases always result in higher unemployment among certain groups.  The problem isn’t that the nominal wage is too low, it’s that the actions of the Fed have reduced the real income of those who are being paid low wages.

InflationMonetary Base 11-4-10Q.E.D.

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Categories: Minimum Wage, Money Supply, Stupid People, Unemployment

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