Welfare recepients blocked from using certain ATMs

[CobraKai]

The chart clearly shows that unemployment rates were falling heading into 1996 but stalled. The minimum wage was raised, and unemployment plummeted until the recession hit. You can argue whether that was a factor, but you can't say "Under every economic model you can name, a random increase in a mandatory wage number will lead to greater unemployment".

 

[JBond]

The chart clearly shows that unemployment rates were falling heading into 1996 but stalled. The minimum wage was raised, and unemployment plummeted until the recession hit. You can argue whether that was a factor, but you can't say "Under every economic model you can name, a random increase in a mandatory wage number will lead to greater unemployment".

The housing bubble Clinton created had more to do with the drop in unemployment than anything else in my opinion, but the real question is under which economic theory does increasing minimum wage reduce unemployment? Certainly not the in vogue Keynesian theory that the left has been embracing the last few of decades.