Minnesota's Job Market Flagging After Hiking Minimum Wage, While Wisconsin Thrives

There’s more than enough ample evidence to suggest that hiking the minimum wage doesn’t have the desired effect of making everyone richer, but many on the left still push for government enforced high minimum wages.


What ends up happening, as any economist worth his salt can tell you, is that businesses are forced to compensate for the increased pay by cutting back hours and/or staff. Many hoping to get an increase in pay suddenly finds themselves without a job to work.

According to one study, California’s minimum wage hikes will cost the state 400,000 jobs by 2022. Red Robin recently had to ax hundreds of jobs across its chains in order to stay profitable due to minimum wage hikes. It’s just not sustainable.

But if you need more proof, then look to Minnesota. That state increased its minimum wage to $9.65 for large businesses and $7.87 for smaller ones.

The pattern kept, and the results were what you’d’ expect according to Professor of Economics, Noah Williams at UW-Madison.


As you can see, Minnesota’s employment rate dropped. Minnesota’s neighbor, Wisconson, however, did no such raising of minimum wages and is seeing employment climb.

This is one more drop in the bucket for the arguments against minimum wage hikes. While some may see an increase in wages, many are left without a job to get money from at all. Even those with increased wages may find themselves working fewer hours, and as a result, end up making about the same as before.

The key to higher wages is fewer taxes, not forced hikes in payment. This has been proved through the GOP’s tax cuts, which caused many businesses to increase the pay for their employees, and even dole out some bonuses.


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