Sometimes state government makes bad policy decisions because it is improvising without any example to follow for its actions, and sometimes state government makes bad policy decisions because it ignores the evidence that other states have generated. Passing progressive Democrat Gina Raimondo’s proposed new Medicaid tax on employers and her proposed minimum wage increase would be in the second category.
Writing for the Foundation for Economic Education, Jon Miltimore notes one New York City restauranteur who is cutting hours, cutting staff, and increasing prices, all to address a massive increase in the city’s minimum wage:
Bloostein is just one restaurant owner, you might say. But he is not alone. A New York City Hospitality Alliance survey shows that 75 percent of restaurants said they planned to cut employees hours in response to the wage hike. Nearly half (47 percent) said they’d cut jobs.
The outcome is hardly a surprise. These are the signature responses to steep wage hikes forced onto businesses (those that manage to bear the costs and stay open, anyway).
However pure the intentions of New York politicians might be, the minimum wage will have a dire impact on those who can least afford it: young, poor workers who will not be afforded important job experience. It’s a terrible way to fight poverty …
Of course, as Miltimore goes on to suggest, New York politicians’ intentions cannot be assumed to be pure. Their incentives are different from the people’s needs, and that most definitely applies to Governor Raimondo.