Nbadan
08-07-2006, 02:06 AM
Forget what your eco. 101 teacher thought you, turns out they were wrong...
Prominent economists of all ideological persuasions long believed that raising the U.S. minimum wage would retard job growth, creating unintended hardship for those at the bottom of the ladder.
Today, that consensus is eroding, and a vigorous debate has developed as some argue that boosting the wage would pull millions out of poverty.
A moderate increase in the minimum wage won't raise unemployment among low-skilled workers, according to recent studies, many economists say. They are joined by some business executives who say they can live with that, especially if it's coupled with tax relief.
``My thinking on this has changed dramatically,'' says Alan Blinder, a former Federal Reserve vice chairman who teaches economics at Princeton University in Princeton, New Jersey. ``The evidence appears to be against the simple-minded theory that a modest increase in the minimum wage causes substantial job loss.''
Bloomberg (http://www.bloomberg.com/apps/news?pid=20601070&sid=atp2MiOAZ3Xc&refer=home)
States that have inacted higher minimum wages have had better job growth and have collected more in taxes than states with lower starting minimum wage jobs.
Prominent economists of all ideological persuasions long believed that raising the U.S. minimum wage would retard job growth, creating unintended hardship for those at the bottom of the ladder.
Today, that consensus is eroding, and a vigorous debate has developed as some argue that boosting the wage would pull millions out of poverty.
A moderate increase in the minimum wage won't raise unemployment among low-skilled workers, according to recent studies, many economists say. They are joined by some business executives who say they can live with that, especially if it's coupled with tax relief.
``My thinking on this has changed dramatically,'' says Alan Blinder, a former Federal Reserve vice chairman who teaches economics at Princeton University in Princeton, New Jersey. ``The evidence appears to be against the simple-minded theory that a modest increase in the minimum wage causes substantial job loss.''
Bloomberg (http://www.bloomberg.com/apps/news?pid=20601070&sid=atp2MiOAZ3Xc&refer=home)
States that have inacted higher minimum wages have had better job growth and have collected more in taxes than states with lower starting minimum wage jobs.