Author Topic: The Joe Biden Thread  (Read 6720 times)

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Offline segnosaur

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Re: The Joe Biden Thread
« Reply #750 on: March 08, 2021, 01:42:33 pm »
Keep in mind that the whole "minimum wage" thing is a little more complex than some people make it out to be.

Yes, it certainly sounds good... "Give people a living wage", but the Congressional Budget Office (a non-partisan part of the government) has pointed out that a large increase in the minimum wage might help many low income workers, but it would also potentially cause thousands of others to lose their jobs.

Counterpoint: No, a $15 minimum wage won’t cost 1.4 million jobs
Counter counterpoint:

In a comprehensive, 182-page summary of the research on this subject from the last two decades, economists David Neumark (UC-Irvine) and William Wascher (Federal Reserve Board) determined that 85 percent of the best research points to a loss of jobs following a minimum wage increase.
Twenty-eight states raised minimum wages in the four years prior to passage of the last federal minimum wage increase. Economists from Cornell and American Universities...found no associated reduction in poverty rates.

Here's what I think the problem is...

A small minimum wage increase will have no impact on employment. A large minimum wage increase will. Most minimum wage increases have been small... so you will get studies that show "increasing minimum wages doesn't impact employment". And progressives can of course point to those studies and say "see? No impact". When minimum wage increases are larger, they DO have a bigger impact on employment. But since such big increases are rare, you don't always have the same evidence. 
« Last Edit: March 08, 2021, 01:47:38 pm by segnosaur »