The absurdity of arbitrarily raising the minimum wage aside, Obama lies about its effect on unemployment based on “studies” just as he does about the benefits of Head Start.
University of California at Irvine economist David Neumark has looked at more than 100 major academic studies on the minimum wage, and he says the White House claim of de minimis job losses “grossly misstates the weight of the evidence.” About 85% of the studies “find a negative employment effect on low-skilled workers.”
And guess which “low-skilled workers” are most adversely affected?
Hiking the minimum wage hurts — not helps — the lowest-paid workers, especially young black men. A 10% hike in the minimum wage causes a 2.5% drop in employment among young white men without a high school diploma and a staggering 6.5% drop among young black men without that degree.
Young black males get clobbered three times as hard because they tend to work in the fast-food and restaurant industries, where any increase in labor costs produces layoffs.
So apparently Obama thinks that unemployment is a “ladder of opportunity” into the middle class, especially for young black people.