Over three months ago Oregon Governor Kate Brown passed a bill that would substantially increase the minimum wage despite massive Republican pushback. Now Democrat’s are admitting the deleterious effects the bill will likely continue to have.
Oregon’s Governor, Senate and House is dominated by Democrat’s. The bill was pushed through a five week legislative session and had a lot of scrutiny. An economist from Portland, Oregon commented on the matter,
“They just wanted to pass something. They were really worried about the 15 Now people sending something to the ballot, and I think they got so snakebit they would have passed anything that was called a minimum wage increase.”
As as a result the minimum wage was gradually increased throughout the state. Different cities and towns increased it differently according to their population. In rural Oregon one town raised it to $12.50 and in the urban center of Portland it was increased to $14.75. It was meant to take full effect by 2022.
A state analyst report indicated by 2025 their would be 40,000 fewer jobs as a result of the new enacted legislation. Apparently taking a micro and macro economics class isn’t something these Democrat’s have done.
Perhaps they should learn what basic economics means. Rule one, when you drastically increase the minimum wage business owners are far less likely to hire new help because they don’t have the extra funds.
A local orchard owner admitted his business will likely be taking an even larger hit than it already has.
“When those pears and apples are sold on the market, they’re not going to give us any more money because we’re from Oregon and have a higher pay rate,” said John Zielinski.
Rural towns are beginning to file suit against the state calling the minimum wage hike an unfunded mandate. Hopefully their voices will be heard.