New National Ad: Minimum Wage Workers in Fast Lane to Unemployment

Rigorous economic research has long shown that raising the minimum wage results in job loss for the least-skilled employees. A recently released report from the non-partisan Congressional Budget Office (CBO) details that raising the minimum wage to $10.10 will reduce job opportunities for the least-skilled—the potential job losses range from 500,000 to one million jobs. This would come at a time when unemployment for young adults has already been above 20 percent for more than five years.

new commercial by the Employment Policies Institute (EPI) illustrates in real terms the consequences of a higher minimum wage: From disappearing grocery store cashiers to diners who can order their own food, a higher minimum wage forces employers to seek less-costly automated alternatives when customers are unwilling to pay higher prices.

Even Microsoft co-founder Bill Gates has warned that a higher minimum wage could spur employers to “buy machines and automate things.” It’s a trend that’s happening already, and will accelerate further if President Obama and his supporters get their way on a $10.10 minimum wage.