Tuesday, December 15, 2009

Validation

I have written many articles about the minimum wage. Every time I do the sad and angry show up to call me names. Well here it is. Some economic got together and wrote a book with what is considered a record level of research into the subject.

How Minimum Wage Affects the Job Hunt
December 14, 2009 - 2:42 PM | by: James Rosen

It's been an article of faith for so long that the minimum wage offers a "hand up" to the people on the lowest rung of the economic ladder, but some recent studies show otherwise.

The most exhaustive of these is a landmark book published last year called "Minimum Wages." It's by two economists, David Neumark of the University of California and William Wascher of the Federal Reserve.

They examined sixty years of data and concluded the minimum wage actually cuts down on job opportunities and even wages, over time, for low-skilled workers.

Neumark broke down his theory for Fox News in simple, layman's terms, starting with the premise of what would happen if the minimum wage were raised again, say, tomorrow.

"Now, many people, of course, will not lose their job. Many people who were employed at the old minimum wage will, you know, have a raise in their wage, and they will still be employed at the new minimum wage,” Neumark told Fox News.

“A small number -- and it depends how big the minimum wage increase is -- will lose their job.

“Some people entering the labor market for the first time, or, you know, anew, will not be able to find a job because of the higher minimum wage."

The last bump for the minimum wage was this past July, a seventy cent increase to $7.25 an hour.

In September, three months later, the teen unemployment rate hit 25.9 percent, a full two points higher than in July, and the highest since World War II.

Charles Lane, a member of the Washington Post editorial board, recently called for the minimum wage to be rolled back as a way of creating jobs. That would require an act of Congress, and it's not likely anytime soon. Democrats control both houses of Congress and the issue has become, particularly for Democrats, freighted with emotion.

Read the rest

Perhaps some make up reading would help.
The Minimum Wage Isn't the Problem
How Do I Understand Price Structure In Business
The Minimum Wage Comes Up Again

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1 Comments:

Blogger Joe said...

As with all government mandates, minimum wage is a national hoax.

11:21 AM, December 17, 2009  

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