Seattle’s Minimum-Wage Education
The progressive idea is to raise the minimum wage then everything will be better.
More below the fold.
The actual effects are negative increasing the unemployment rate for minimum wage workers, and reducing hours worked for those with a job.
"None of this will surprise anyone who understands that increasing the cost of something will reduce the demand for it. Then again, that concept seems to elude both major presidential candidates, who have floated national minimum-wage increases. The results will be the same as in Seattle: Fewer opportunities for the people the law is intended to help."
On the other hand, classical liberals are more interested in supporting regulatory reforms, and tax reforms, like a reduction in the corporate tax.
The Cure for Wage Stagnation
"Fortunately, such a plan exists. Regardless of who is elected in November, workers from both parties should unite and demand a cut in corporate tax rates. The economic theory behind this proposition is uncontroversial. More productive workers earn higher wages. Workers become more productive when they acquire better skills or have better tools. Lower corporate rates create the right incentives for firms to give workers better tools."
This doesn't just work for the 1% but for all workers, and especially for the low wage worker. These people commonly have very low skills, and experience with work. It does not take much to propel them out of the low wage ranks, and into higher wage categories. Plus, the Corporate tax cut does not stop with low wage workers, but continues to offer the same benefits to mid and higher wage workers, allowing them to move up, and opening up more mid wage positions for lower wage workers, and more high wage positions for mid wage workers.
Or we can pass a national minimum wage increase, and hurt the unskilled seeking work, and many of the low wage workers, while reducing hours for many more, and not helping higher wage workers at all.
There are many other benefits to reducing the corporate tax, but only one benefit to increasing the minimum wage, it offers politicians a large amount of graft, and corruption.