Jared Bernstein makes his case for raising minimum wage.A 10 percent wage increase equals only an 0.7 percent price increase, many more people will gain from the price increase compared to the relatively few who might actually lose a job if the minimum wage is increased, although prices might go up 0.7 percent, many employers will reduce profits rather than bump up prices too much. Bernstein said reducing profits slightly while raising wages is actually a good thing given how much profits have increased in recent years and how little wages have increased in the same time period. He said it would be good to index the minimum wage to inflation. He also said that any minimum wage increase must be done at the state or local level, because gridlocked Congress is not about to raise the federal minimum wage any time soon. You can read his piece and see if you agree or think it is hooey.
Posted on: Thu, 02 Oct 2014 01:15:07 +0000
Trending Topics
Recently Viewed Topics
© 2015