No. of Recommendations: 3
Read over the articles. No data, just statements.

Stop skimming and start reading.

From the first link, halfway down the page:

In a 2014 report, the CBO estimated that a federal minimum wage increase from $7.25 to $10.10—a 39% increase when fully implemented in 2016—would reduce total employment by about 500,000 workers, or about 0.3%, with a two-thirds chance that the employment loss would be between a very slight reduction and one million workers. An increase in the minimum wage would boost the wages of 16.5 million workers who remained employed. But it would reduce the number of people (not workers) in poverty by only 900,000, or about 2% [1].

So, for people who are concerned about the working poor, this minimum wage increase is not a very effective mechanism for reducing poverty. That was Stigler’s conclusion in 1946 for exactly the same microeconomic reasons given by the CBO in 2014. Artificially increasing the wages of low-skilled workers above the wage rate established in the competitive marketplace by the forces of supply and demand would reduce the number of workers employed at this higher wage.

The CBO’s central demand elasticity estimate for affected teenagers was –0.1. That is, a 10% increase in the minimum wage would reduce employment by 1%. The CBO reported the likely range for this elasticity to be from slightly negative to –0.2, with a central estimate of –0.067 for affected adults. These elasticities support the CBO’s prediction that fewer workers would be employed because of a 39% increase in the federal minimum wage rate [1].

[At least nine more references follow]


But what about Stigler’s second question: Are there efficient alternatives to minimum wage increases? On this issue there is very little disagreement. A much less reported finding of the 2014 CBO report is that the earned income tax credit is a far superior way to provide additional income to workers who live in poor families [1]. In the 2014 report, the CBO refers to its 2007 report, which compared the cost to employers of a change in the minimum wage that raised the income of poor families by a given amount with the cost to the federal government of an enhancement in the earned income tax credit that raised the income of poor families by roughly the same amount. The cost of a higher minimum wage to employers (and to consumers who purchase their products) was much larger than the cost to the government (and the taxpayers who provide these revenues) of an enhancement in the earned income tax credit.


The reason for the raise is to force increases in productivity through out the economic system, and get the government out of SNAP payments, and low income housing. These aids to the poor distort the economic system and cause inefficiencies.

So your way to fix inefficiencies is by introducing even more artificial cost of labor inefficiencies? And even worse, making the cost of those new inefficiencies (higher cost of min wage labor) paid for by the customers of those businesses - who are much more likely to be poor than rich.

You can't possibly think that taking the min wage to $15 will get rid of SNAP or low (or more accurately no income) housing. You won't get rid of those by forcing the cost onto consumers. That is exceptionally short sighted. Is there any country in the world where they have been able to move from a system of government support for the poor to a market-based, government-mandated solution?
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