Source: Foundation for Economic Education
by Matthew Blakey
“While empirical studies can yield conflicting results depending on the methodology or timeframe used, the California findings reinforce what generations of economists — from classical economists to modern market theorists — have long understood: there’s no escaping trade-offs. California’s recent experience should serve as a cautionary tale for lawmakers around the country. While increasing the minimum wage may sound helpful, it carries hidden costs that disproportionately affect low-skilled workers, who face the highest risk of being priced out of the labor market. A review of Seattle’s experience from ten years ago would have demonstrated California’s likely outcome.” (08/13/25)