Minimum wages destroy jobs

Patrick Gibbons

Nevada is about to raise the minimum wage on July 1, 2010 from $7.25 an hour to $8.25 an hour for those without health insurance – a 13.8 percent increase. Those minimum wage workers better be able to produce more than $8.25 an hour (plus payroll tax costs, and other administration costs associated with your labor) in value, otherwise they are out of job! I expect unemployment to increase after July 1 (if businesses haven’t already anticipated the wage increase and cut jobs already).