The most common objection to raising the minimum wage is that it destroys jobs.But a slew of recent studies have pointed out that although raising the minimum wage does increase earnings and reduce poverty, it has a limited, almost negligible, effect on employment.
By using tax revenue and a complicated government bureaucracy to subsidize low-wage employers and supplement minimum-wage salaries.
Rather than firms paying a worker’s true cost and customers paying an appropriate price for the services provided by those firms, the government provides workers with “income transfers” to help them meet basic needs.
Finally, critics of raising the minimum wage often suggest raising the earned income tax credit instead.
But that would simply perpetuate the cycle of devaluing work.
It also takes money out of the pockets of taxpayers rather than from the businesses that benefit from the credit, creating, in effect, a federal subsidy for low-wage employers.
A higher minimum wage would help ensure that the earned income tax credit works more effectively and efficiently.Raising the minimum wage is about reducing inequality, but it is also about restoring the true value of work. Andy Stern is a senior fellow at Columbia University’s Richman Center and former president of the Service Employees International Union.Carl Camden is president and CEO of Kelly Services and co-chairman of the board of trustees of the Committee for Economic Development.Studies have also illustrated that restoring the dignity of work through higher wages reduces worker turnover and increases productivity.Some make the overstated claim that increasing the minimum wage would accelerate companies’ off-shoring of jobs.Artificially low wages teach workers that their work is not valuable — a disastrous policy outcome.In his State of the Union speech, President Obama called for raising the minimum wage to an hour.But if a small growth in the minimum wage is enough to move an industry to automation, it is likely that automation was coming in short order anyway.Technological progress is inevitable and further automation unavoidable.We continue to identify technical compliance solutions that will provide all readers with our award-winning journalism.What would be so bad about raising minimum wage, it sounds good and all?