Raising the Minimum Wage Leads to Job Cuts, Accelerates Automation
Commentary
Proponents of a higher minimum wage believe it would reduce poverty, while economists believe it would reduce employment. Meanwhile, rising labor costs are driving automation to make workers redundant.
On Aug. 16, President Joe Biden signed the $700 billion-plus Inflation Reduction Act. Some experts believe it will not help curb inflation, whereas others believe it will actually worsen things. The inflation, which largely stems from government spending on the COVID-19 pandemic, cannot be constrained by additional spending or legislation related to wages. The job market is in flux. Companies are laying off workers, but Democrats in various parts of the country still call for an increase in the minimum wage….