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In addition to the lack of a control and the sole focus on the federal minimum wage which in many cases is simply irrelevant, the basic failure in this study is
by wordsarewind 9y ago
In addition to the lack of a control and the sole focus on the federal minimum wage which in many cases is simply irrelevant, the basic failure in this study is the use of nominal instead of real wages. The inflation-adjusted federal minimum wage has not changed significantly in decades, falling below, only to be corrected up to, the 1990 level.[1] Honestly, any empirical evidence that challenges the classic economic models by including the potential effects of increased purchasing power on job growth, among other things, must use inflation-adjusted wages. Furthermore, littering a report with quotes from conservatives, as if to show their inexplicable obsessions with an obviously absurd position is pathetic. This is not some crackpot theory bandied around to keep the boot on the poor beggar's neck, it follows from a logically sound, although perhaps overly simplistic, model which is the basis of our understanding of price controls, including minimum wage.
[1] https://fredblog.stlouisfed.org/2015/07/the-real-minimum-wage/ https://fredblog.stlouisfed.org/2015/07/the-real-minimum-wag...
(Edited wage level analysis and cited source.)