- There are certainly working poor people supporting families on the minimum wage, but they are the minority of minimum wage workers. If the point is to help these people, increasing the minimum wage is a poorly targeted and expensive way of doing it, even if there weren't adverse effects (and there's a lot to suggest that there would be).
- You can't talk about general labour productivity to draw insights about the appropriateness of specific wage rates. Average labour productivity has gone up, but there's evidence that the productivity of minimum wage workers has actually been dragging down that average - the minimum wage may have risen five or six times faster than minimum wage-earners' productivity, not so slowly that it's nearly $15 lower than it should be.
Wednesday, February 05, 2014
Forbes: Everything you know (about the minimum wage) is wrong
This piece in Forbes is pretty well done. The main points: