WASHINGTON, Jan. 18 /PRNewswire-USNewswire/ -- Today, the Employment Policies Institute [EPI] is running a full-page ad in the Washington Post asking the public to rethink the notion that minimum wage hikes are a good idea. The timing of the ad coincides with the introduction of federal legislation to hike the minimum wage by over 40 percent.
The ad reads:
Think Raising the Minimum Wage is a Good Idea?
'The reason I object to the minimum wage is I think it destroys jobs, and
I think the evidence on that, in my judgment, is overwhelming.'
-- Alan Greenspan, Former Federal Reserve Chairman
'The high rate of unemployment among teenagers, and especially black
teenagers,* is both a scandal and a serious source of social unrest. Yet
it is largely a result of minimum wage laws.'
-- Milton Friedman, Nobel Prize-winning economist
'In some cases the effective marginal tax rate [on a minimum wage
increase] exceeds 100 percent and the price of earning extra income may be
to leave one's family worse off than previously.'
-- David Shaviro, New York University
'Even a wizard would have a great deal of difficulty repealing the
economic law that higher minimum wages reduce employment. Since
politicians are not wizards, they should not try.'
-- Gary Becker, Nobel Prize-winning economist
Think Again.
'It is a huge misconception that raising the minimum wage is a viable anti-poverty tool and that low-income families will see a large benefit from a hike,' said Dr. Jill Jenkins, EPI's Chief Economist. 'The public needs to understand what economists have known for over half a century: raising the minimum wage jeopardizes the jobs of those with low skills who need the help the most.'
*According to the Bureau of Labor Statistics December Jobs Report, African American teen unemployment is 26.2 percent.
The Employment Policies Institute is a nonprofit research organization dedicated to studying public policy issues surrounding entry-level employment.
SOURCE Employment Policies Institute
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Not being an economist, this still makes perfect sense.
The ad reads:
Think Raising the Minimum Wage is a Good Idea?
'The reason I object to the minimum wage is I think it destroys jobs, and
I think the evidence on that, in my judgment, is overwhelming.'
-- Alan Greenspan, Former Federal Reserve Chairman
'The high rate of unemployment among teenagers, and especially black
teenagers,* is both a scandal and a serious source of social unrest. Yet
it is largely a result of minimum wage laws.'
-- Milton Friedman, Nobel Prize-winning economist
'In some cases the effective marginal tax rate [on a minimum wage
increase] exceeds 100 percent and the price of earning extra income may be
to leave one's family worse off than previously.'
-- David Shaviro, New York University
'Even a wizard would have a great deal of difficulty repealing the
economic law that higher minimum wages reduce employment. Since
politicians are not wizards, they should not try.'
-- Gary Becker, Nobel Prize-winning economist
Think Again.
'It is a huge misconception that raising the minimum wage is a viable anti-poverty tool and that low-income families will see a large benefit from a hike,' said Dr. Jill Jenkins, EPI's Chief Economist. 'The public needs to understand what economists have known for over half a century: raising the minimum wage jeopardizes the jobs of those with low skills who need the help the most.'
*According to the Bureau of Labor Statistics December Jobs Report, African American teen unemployment is 26.2 percent.
The Employment Policies Institute is a nonprofit research organization dedicated to studying public policy issues surrounding entry-level employment.
SOURCE Employment Policies Institute
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Not being an economist, this still makes perfect sense.