The minimum wage destroys the jobs that are the greatest source of income for low skilled workers, the very workers who are the object of this misdirected "compassion."Link HT: Mark Perry
Yes, it's a perfect example of starting a business from nothing, and "living the American Dream," except thatin October, the company told workers they were closing the plant in Missouri and contracting the work out to a factory in Mexico. One of the main reasons?
High and rising labor costs, primarily from the 37% increase in Missouri's minimum wage from $5.15 per hour in 2006 to $7.05 starting January 1, 2009 (see chart above), which contributed significantly to losses for the company over the last few years. The market for their products is so competitive that the company couldn't increase the price of the bows to offset the higher labor costs without losing sales, so the company was forced to move production to Mexico, and now more than 200 Missouri jobs have evaporated - largely thanks to the minimum wage.
