According to the reference (Issues Surrounding the Minimum Wage Debate REVISION 2- Bruce D. Philips,NFIB Research Foundation, 11/30/05) increasing the minimum wage hurts low-skill employees. Most economists agree that increasing the minimum wage destroys jobs. This job loss is concentrated on the least skilled employees in the economy. Research from Duke University, the University of Wisconsin, and Michigan State University indicates that increases in the minimum wage hurt low-skill employees. Cornell University economists found that groups such as high school dropouts and black young adults suffer four times more employment loss from a minimum wage increase than their non-black and more educated counterparts.
Losses to small business
…show more content…
Mr. Krueger and Mr. Card found that prices in restaurants in their study rose about 4 percent faster in New Jersey than they did in Pennsylvania. But that's unlikely to induce customers to stop eating fast food. If labor accounts for about 30 percent of total costs in fast-food chains, even assuming that everybody at the restaurant works for the minimum wage, an increase of 40 percent, before inflation, is likely to add less than 10 percent to the price of your burger over two years
The second point on minimum wage that was discussed by the New York Times magazine was under the title (“The Bare Minimum” by SARAH HAMERSMA, Published: March 8, 2007 The New York Times http://topics.nytimes.com/top/reference/timestopics/subjects/m/minimum_wage/index.html )
This article states there’s a more direct path to improving incomes for the working poor. Instead of requiring employers to pay more, and then allowing them to apply for reimbursement through tax subsidies, why not skip the middleman and subsidize the worker directly?
Such a program already exists.
The Earned Income Tax Credit is a federal tax refund for workers, who qualify based on family income rather than individual income or wages. This means that an upper-class teenager working at McDonald’s will not get a benefit, but someone trying to support a family will. Over the last 15 years, the credit’s subsidy rates have increased and the