minimum wage

nationality

American

occupation / innovator as

economist

is that which, contrary to the evidence, raising has little to no impact on employment for low-wage earners.

This report examines the most recent wave of this research ' roughly since 2000 ' to determine the best current estimates of the impact of increases in the minimum wage on the employment prospects of low-wage workers. The weight of that evidence points to little or no employment response to modest increases in the minimum wage. The report reviews evidence on eleven possible adjustments to minimum-wage increases that may help to explain why the measured employment effects are so consistently small. The strongest evidence suggests that the most important channels of adjustment are: reductions in labor turnover... improvements in organizational efficiency... reductions in wages of higher earners (wage compression)... and small price increases.

is a law which, if eliminated, would cause an increase in the number of job offers perhaps sufficient to virtually wipe out unemployment completely.

But if that is true, then what is the point of raising or lowering it' Those in the latter camp (Michelle Bachman, for example) believe that eliminating the federal minimum wage would cause an increase in the number of job offers perhaps sufficient to 'virtually wipe out unemployment completely' (Would Killing the Minimum Wage Help'). However, as shown above, there is no evidence to support this. Besides that, when in US economic history has a spike in wages been the reason for a rise in unemployment' Never. We are therefore unlikely to solve any economic woes by lowering wages, minimum or otherwise.

is justified philosophically on the basis that it allows the law to do what it was designed to do in the first place; namely, protect the least powerful members of our society from predation.

Those arguing for an increase, like Bernie Sanders (I-VT) and other members of Congress, are on firmer scientific ground because they are not basing their recommendation on the assumption that raising the minimum wage would boost employment (Sanders Introduces Bill for $15-an-Hour Minimum Wage). Rather, they are only suggesting that such a revision would allow the law to do what it was designed to do in the first place: protect the least powerful members of our society from predation. https://www.forbes.com/sites/johntharvey/2015/07/31/real-argument-for-raising-minimum-wage/#33e3f7dc777d

1s 2urpose is in fact primarily social and its goal ought thus not be to raise or lower unemployment (which it does not do), but rather, just like many other laws, to protect those who might not have the power or resources be able to protect themselves.

The goal of the minimum wage law is not to raise or lower unemployment, nor should it be because evidence suggests that it really can't. Its purpose is social. It is meant, just like many other laws, to protect those who might not have the power or resources be able to protect themselves. And there's little doubt who is the in need of protection in this context.

John T. HarveyThinkers

John T. Harvey