Friday, October 09, 2015

Do We Need to Raise the Minimum Wage so "People Who Work Full Time Don't Live in Poverty"?

From the Foundation For Economic Education:
Critics of the minimum wage used to be able to respond to arguments for raising it by stretching the logic to its extremes. If $10 is so great, why not $20 or $50 an hour? The reductio ad absurdum should cause even the staunchest minimum wage advocate to ponder the potential unintended consequences of their ideas.
Unfortunately, we now live in a world where caricatures have become reality. Sen. Elizabeth Warren wonders why we don’t have a $22 minimum wage (I explain why she doesn’t have much to ponder here), and Sen. Bernie Sanders has now joined the “Fight for Fifteen.”
For the moment, let’s set aside the economic debate over whether the minimum wage costs jobs. (The CBOmajority of economists, and majority of empirical studies pretty much say it all.)
Instead, let’s address Sanders and Warren's moral argument for hiking the minimum wage to such levels: that “no one who works full time should have to live in poverty.” 
Article here:


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