What’s worse, noted economists Joseph J. Sabia and Richard V. Burkhauser reported in the esteemed Southern Economic Journal that 83 percent of those who would be affected by increasing the federal minimum wage to $9.50 live in households above the poverty line.
It might make for good politics with voters who live with their hands out, but the evidence strongly indicates that forcing a higher minimum wage on employers will neither solve the poverty problem nor benefit the group which supporters claim they want to help.
Arguments for the minimum wage have been defeated on so many fronts, yet some still somehow manage to sleep-walk right back toward these economic fallacies.
Jim Waters is vice president of policy and communications for the Bluegrass Institute, Kentucky’s free-market think tank. Reach him at firstname.lastname@example.org. Read previously published columns at www.bipps.org.