Today Tyler Cowen posted this:
Remember the proposals for a $15 federal minimum wage?
Employment would be reduced by 1.4 million workers, or 0.9 percent, according to CBO’s average estimate…
That is from the new CBO report.
Here is a bit more context:
In an average week in 2025, the year when the minimum wage would reach $15 per hour, 17 million workers whose wages would otherwise be below $15 per hour would be directly affected, and many of the 10 million workers whose wages would otherwise be slightly above
that wage rate would also be affected. At that time, the effects on workers and their families would include the following:
Employment would be reduced by 1.4 million workers, or 0.9 percent, according to CBO’s average estimate; and
The number of people in poverty would be reduced by 0.9 million.
We can debate whether to raise the minimum wage, how far, whether to use wage subsidies or a negative income tax, etc. But debate is difficult when one side refuses to participate in good faith. Furthermore, when right-wing economists spread obvious half-truths to bolster the case for their preferred but unpopular policies they undermine trust in the economics profession as a whole. This makes it more difficult for economists to get a hearing when they have something important to say. I really don’t know what Cowen thinks he is accomplishing by doing this.
Prior post here.