Most state legislatures are kicking off 2021 focused on economic matters after a highly tumultuous 2020. Every state in the union experienced a shortfall in 2020 tax revenues due to the pandemic. Although some states fared better than others, lockdowns wreaked havoc and economic devastation that continues to this day.
Americans desperately hope that in 2021, lockdowns will be lifted. Americans also hope the new year will bring better economic times and opportunities.
Therefore, it is unsurprising that some lawmakers are flippantly considering implementing minimum wage increases in a misguided attempt to provide relief to their struggling constituencies.
However, this is a deeply ineffective way to improve the economy. Arbitrary minimum wage hikes produce unintended consequences that can inflict even more pain upon the people they are supposed to benefit.
Minimum wage hikes rarely meet the overinflated expectations of the policymakers who advocate for them. For example, they do not raise the living standard in any appreciable way for individuals and families, yet illogical wage increases have the propensity to shutter small businesses for good.
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