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Doesn't strike me as particularly balanced (from the economic not political angle), it takes a strictly negative view of the effect of minimum wage on employmen
by frgtpsswrdlame 7y ago
Doesn't strike me as particularly balanced (from the economic not political angle), it takes a strictly negative view of the effect of minimum wage on employment. This is the view the theory would support but is actually in empirical dispute as dueling studies continue to come out. They don't account for a single positive effect on employment from raising the minimum wage, even in just the estimated ranges of the effect, yet just two years ago we had 600 economists sign a letter in support of a $10 min wage which included this statement:
"Research suggests that a minimum-wage increase could have a small stimulative effect on the economy as low-wage workers spend their additional earnings, raising demand and job growth, and providing some help on the jobs front."
https://www.epi.org/minimum-wage-statement/ https://www.epi.org/minimum-wage-statement/
Even within the document when they talk about the uncertainty of effect the minimum wage has on employment they're talking about uncertainty of magnitude (negative) and not uncertainty around the direction of that change.
Take a look at:
"By boosting the income of low-wage workers who keep
their jobs, a higher minimum wage raises their families’
real income, lifting some of those families out of
poverty. However, real income falls for some families
because other workers lose their jobs, business owners
lose income, and prices increase for consumers. For those
reasons, the net effect of a minimum-wage increase is to
reduce average real family income."
I think if you read that quote to different economists who study the minimum wage you would find very, very different opinions on how true it is.