Hillary Clinton: ‘No Evidence’ to Suggest Raising the Minimum Wage Kills Jobs
. . . "no evidence," if one means "massive evidence" establishing that raising the minimum wage kills jobs.
To scratch the surface, I present:
Simply and briefly, the case against minimum wage hikes
New(est) evidence on the minimum wage
The anti-job impact of minimum wage hikes
So, the problem is hiking the minimum wage does not target the correct people, and the benefit will be substantially obtained by people who do not need the benefit, children of middle/upper middle class parents. What we want is to help the actually needy achieve a livable wage, not subsidize the children of the wealthy. So, what do we do?
The 'Fight for 15' isn't the risk free way to help boost worker wages - AEI
Use the EITC, and raise their wage through the rebatable tax credit. This is just a stop gap in my mind, and a reasonable one since it already exists. But what we really need is for the working poor to receive a wage boost through a new savings vehicle like a tax free savings account (TFSA). If the individual meets specific criteria, work, a below livability wage, married, or married with family, then the individual should receive a wage supplement payment each month directly into the TFSA, which would bring the wage to the local livability requirement. This way we could keep the minimum wage low, say 0 if we are rational, and $4 if we are a bit less rational, and then allow this wage subsidy to norm the wage.
This would allow people with few or no skills to enter the job market at "try out" wages, and once they begin to perform, employers would begin to pay them according to the value they add to the business. The low wage allows the employer to try a broad range of employees, provide training, and help them orient to the job market.
Many first time employees will be more likely worth $5 per hour, and not $15. This will allow them to compete for jobs, and obtain work related skills. And if they qualify for wage supplementation, they will receive it as cash into a TFSA.
This avoids the market distortions that the minimum wage creates, and the fact that the minimum wage frequently blocks out the very workers it is supposed to help, while helping the workers we are not concerned with helping.
Expect this to make no headway, while the minimum wage will continue to make inroads. Foolishness has no bounds.