The $15 minimum wage is an empty promise to the poor

Union Leader | September 22, 2016 | Joseph Sabia

The job losses from a $15 minimum wage mean that it will not alleviate poverty, but will simply redistribute poverty. While poor workers who keep their jobs may be lifted out of poverty by a $15 minimum wage, other near-poor workers who lose their jobs or have their hours cut will be plunged into poverty. The misery just gets shuffled around.

 

A minimum wage hike is the wrong fix

LA Times | March 8, 2016 | David Neumark

Standard economic theory holds that when the costs of low-wage workers are raised by a higher minimum wage, employers reduce employment — for two reasons. First, employers suddenly find it economical to replace, say, two minimum-wage workers with one slightly more expensive, presumably more experienced or efficient worker. (One $25-an-hour worker may be a better deal than two $15-an-hour workers.) Second, the rising cost of salaries leads employers to raise prices, which leads to lower demand, meaning they have to lower overhead by reducing head count.

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