Higher minimum wages may increase homelessness

West Hollywood, home to the legendary Sunset Strip, now has a new claim to fame: It has the highest minimum wage in America.

At the beginning of July, the city’s wage floor rose to $19.08 an hour, surpassing even Los Angeles and San Francisco. The predictable arguments followed, in the hallowed tradition of America’s minimum wage wars.

Employers said they couldn’t afford the higher payroll costs and would be forced to cut back on staff. “If we go out of business, that means workers will lose their jobs, too,” restaurant owner Lucian Tudor told the Los Angeles Times.

Progressives retorted that, thanks to the minimum wage, vulnerable workers are finally able to enjoy a semi-decent standard of living.

Both these arguments can be true, of course: Even if employers pare their payrolls by firing some folks, the workers who keep their jobs may be better off. Balancing the interests of the two groups is a tricky business

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