EDITORIAL: Populist right goes wrong on the minimum wage

Count Sen. Josh Hawley, R-Mo., as the newest acolyte of the economic policy of Sen. Bernie Sanders, I-Vt. That’s unfortunate.

This month, Sen. Hawley introduced a bill to increase the federal minimum wage to $15 an hour. It would also automatically boost the minimum wage each year to account for inflation. Sen. Hawley claims the current federal minimum wage of $7.25 an hour is the lowest inflation-adjusted amount since the 1940s. The proposal is co-sponsored by Sen. Peter Welch, D-Vt., one of the most liberal members of the Senate.

“For decades, working Americans have seen their wages flatline,” Sen. Hawley said. “One major culprit of this is the failure of the federal minimum wage to keep up with the economic reality facing hardworking Americans every day.” A decade ago, that level of economic illiteracy was almost exclusively the domain of self-proclaimed socialists, labor leaders and other members of the Democratic coalition. Sen. Sanders has long pushed for a higher minimum wage as part of the left’s “Fight for $15” campaign.

The appeal of a higher minimum wage is obvious. Those making less than $15 an hour would receive an immediate pay raise — assuming they kept their jobs. As it turns out, that isn’t a safe assumption. Companies adjust to higher labor costs in a variety of ways. That includes reducing employment or cutting worker hours, especially if doing so prevents employees from becoming eligible for benefits.

These downsides of minimum wage hikes aren’t spread evenly. They disproportionately affect inexperienced and low-skilled workers. Fewer job openings can take away the opportunities those workers need to gain experience and improve their skills. Most minimum-wage workers earn a raise within a year.

Sen. Hawley frames his proposal as necessary to help Americans afford the skyrocketing costs of things such as housing. There’s a way to test that theory. Many places have raised their minimum wages above the federal mandate. In New York City, the floor is $16.50 an hour. In California, fast-food workers must make $20 an hour.

But those locations are hardly havens for middle-class affordability. The desire for affordable housing is a why many Californians have moved to states such as Texas and Idaho. The minimum wage in both is $7.25. Other destinations include Florida, Arizona and Nevada. Each has a lower minimum wage than California. In Nevada, it’s $12 an hour.

There’s a segment on the populist right that seems to think electoral success requires co-opting the left’s failed economic ideas that may appeal to the working class. How that plays politically is to be determined. On the policy merits, however, raising the minimum wage is going to be an overall loser for the economy while costing jobs — regardless of which party is promoting it.