We recently shared the following example regarding California's minimum wage hike from $10 per hour to $15. At $10 per hour and a 10-year payback, employers may be reluctant to invest in new technology. But, at $15 per hour and a 6-years payback, that investment become a no-brainer.
Unfortunately, while these concepts are somewhat simplistic for most us, they have confounded left-leaning economists and politicians pretty much since the beginning of time.
And while no amount of empirical evidence will change their minds, here is yet another study, this time from Grace Lordan of the London School of Economics and David Neumark of UC Irvine, offering up evidence that raising minimum wages only serves to increase unemployment and disproportionately crushes female and minority low-income workers.
Entitled "People Versus Machines: The Impact of Minimum Wages on Automatable Jobs," the study found that each $1 increase in the minimum wage decreased the "share of lowskilled automatable jobs by 0.43 percentage point."