Minimum Wage/Maximum Growth

Minimum Wage/Maximum Growth
Posted: 02/21/2013 3:20 pm
Robert D. Atkinson, Ph.D.
In his State of the Union Address president Obama proposed that Congress increase the minimum wage to $9.00 per hour.
Almost immediately a chorus of opposition based on neoclassical economics emerged, arguing that such a change would kill job creation. As former Bush Administration economist Greg Mankiw notes, “there is 79 percent agreement among his peers that a minimum wage increases unemployment among young and unskilled workers.” But let’s be clear, what Mankiw really means to say is a 79 percent agreement among neoclassical economists.
In fact, a higher minimum wage would spur economic growth, while also increasing economic fairness.
Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s