… for the problem.
Krugman makes the argument that opposition to raising the minimum wage to $15.00 an hour is not valid because doing so will not cause jobs to disappear.
It’s true that once upon a time there was a near-consensus among economists that minimum wages substantially reduced employment. But that was long ago. These days only a minority of economists think raising the minimum to $15 would have large employment costs, and a strong plurality believe that a significant rise — although maybe not all the way to $15 — would be a good idea.
Why did economists change their minds? No, the profession wasn’t infiltrated by antifa; it was moved by evidence, specifically the results of “natural experiments” that take place when an individual state raises its minimum wage while neighboring states don’t. The lesson from this evidence is that unless minimum wages are raised to levels higher than anything currently being proposed, hiking the minimum won’t have major negative effects on employment — but it will have significant benefits in terms of higher earnings and a reduction in poverty.Who’s Radical Now? The Case of Minimum Wages
Who am I to disagree with a Nobel prize winner who writes for the New York Times? On the above point, not me.
But the point Mr.Krugman makes is a smokescreen. I say that because I have every confidence he knows the other real issues regarding the minimum wage.
The majority of minimum wage earners are not married, or heads of households. They are young and unmarried.
A national minimum wage of $15 has a far different economic impact on communities in Mississippi and other lower income areas than it does in New York.
What is the impact on all workers (and employers) who currently earn $15.00 and several dollars an hour more? Is it unreasonable to assume many workers will demand higher wages?
What is the effect of all this on prices and the cost of doing business?
When the minimum wage is doubled will the income criteria for various subsidies and assistance programs be adjusted accordingly?
When all is said and done how will a person stuck in a minimum wage job be better off?
While the job loss issue is widely discussed, the above issues are rarely, if ever, spoken about.