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Home / Carpe Diem / How San Francisco’s $15-an-hour minimum wage law is exacerbating homelessness – Publications – AEI

How San Francisco’s $15-an-hour minimum wage law is exacerbating homelessness – Publications – AEI

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AEI How San Francisco’s -an-hour minimum wage law is exacerbating homelessness Allan Stevo explains in the City Journal article “Minimum Wage, Maximum Waste” San Francisco’s central business corridor, down Market Street and adjacent streets, is a testament to the failures of the mandatory minimum wage. In these buildings, growing companies are eager for labor, some of it unskilled. Outside, people down on their luck, out of work, and in need of stability are camped out, doing nothing. Everything that we know about homelessness tells us that many, perhaps even most, of these people are not suitable for work, primarily because of problems with mental illness, drug addiction, or both; some others can work, and want to work. But in San Francisco, they effectively cannot. Politicians tout

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How San Francisco’s $15-an-hour minimum wage law is exacerbating homelessness

Allan Stevo explains in the City Journal article “Minimum Wage, Maximum Waste

San Francisco’s central business corridor, down Market Street and adjacent streets, is a testament to the failures of the mandatory minimum wage. In these buildings, growing companies are eager for labor, some of it unskilled. Outside, people down on their luck, out of work, and in need of stability are camped out, doing nothing. Everything that we know about homelessness tells us that many, perhaps even most, of these people are not suitable for work, primarily because of problems with mental illness, drug addiction, or both; some others can work, and want to work. But in San Francisco, they effectively cannot.

Politicians tout minimum-wage increases as societal improvements, but the mandates actually diminish opportunity for the people who need them most. Given San Francisco’s homelessness crisis, it’s hard to think of a more destructive policy response than a law that makes it illegal for a low-skilled but industrious person to offer his labor for the most that an employer can afford to pay him.

How San Francisco’s $15-an-hour minimum wage law is exacerbating homelessness
Mark Perry

Mark Perry
Mark J. Perry is concurrently a scholar at AEI and a professor of economics and finance at the University of Michigan’s Flint campus. He is best known as the creator and editor of the popular economics blog Carpe Diem. At AEI, Perry writes about economic and financial issues for American.com and the AEIdeas blog.

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