Raising The Federal Minimum Wage

1225 WordsNov 18, 20155 Pages
Study shows that wage increases do lower poverty, by 2.4% if wage at $8.00, consistent with other studies. (Washington Post/ Arin Dube) 1. Raising the federal minimum wage doesn’t cause substantial unemployment as most economists agree, including over 600 economists who wrote a letter to Congress urging a wage increase, and the Economic Policy Institute. A. Identify shortcomings of the opposition (fallacies they make, or weaknesses in the evidence they use) 1. Arin Dube’s study would be great, if the effects were actually significant and weren’t accompanied by negative externalities. For one thing, 2.4% is barely a fraction of all the people living in poverty in the USA. The Washington Post suggests raising it higher to get more people impacted, but that is an ignorant idea that ignores the costs of wage hikes. The problem isn’t that only a small portion of people are being lifted out of poverty, it’s all the people that are pushed further into poverty. There are better solutions that have better effects, without the negative labor costs (Nielsen and Sabia, Employment Policies Institute). a. (Better solution is improving EITC, which focuses on the problem) They said that while that job loss does occur, 900,000 people will be lifted out of poverty. 2. Paradoxical studies have been done showing both positive and negative effects on employment. Basic economics tells us labor is a commodity and raising the price floor will cause a surplus, but relatively recent studies tell
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