of jobs in liberal DC suburb, study finds
Research shows the wage boost hurts lower income workers; Dan Springer reports on ‘Special Report’
A new study commissioned by a Washington, D.C., suburb could send a warning shot to local governments taking up the ‘Fight for $15’ – predicting a proposed minimum wage hike would cost thousands of jobs and millions of dollars in lost income.
The study was conducted to assess the impact of a proposal in Montgomery County, Md., to raise the minimum wage to $15, up from $11.50. Such a proposal cleared the county council in January but was vetoed by County Executive Isiah Leggett, who commissioned the study.
The results could strike a blow to ongoing efforts in the liberal-leaning county to hike the wage, finding:
The proposed increase in the County minimum wage has the potential to provide some important benefits,” the study noted. “An increase in earnings for low-wage County workers will have tangible positive impacts for low-income workers and their families. This should also lead to reductions in poverty, improvement in mental health and a reduction in hunger and stress among minimum wage workers.”
But it continued, “… At the same time, it is also projected that the wage increase will lead to a significant loss of low-wage jobs. This loss of jobs would lead to a loss of income among County residents. This also has the spillover effect of reduced income tax revenue for the County.”