Would A Higher Minimum Wage Increase Inequality?
The increased earnings for low-wage workers resulting from the higher minimum wage would total $31 billion, by CBO’s estimate. However, those earnings would not go only to low-income families, because many low-wage workers are not members of low-income families. Just 19 percent of the $31 billion would accrue to families with earnings below the poverty threshold, whereas 29 percent would accrue to families earning more than three times the poverty threshold.
Mankiw maybe right. But we probably need more data. Yet I can anticipate inequality will be increasing.
I agree. Higher minimum wage is just a beautiful utopia..
Correct. This is just a façade to make citizens believe its government is doing what is in their best interests.
So why do the Democrats try to increase the minimum wage?
Because it shows they are at least trying. Better to do something and fail and say you tried than to do nothing at all.
Well that is how they see it at least.
The key to a strong economy is cash flow. money going from hand to hand to hand. Minimum wage increases create cash flow as do tax increases. Which in turn creates a stronger economy. Since the GOP will not allow any tax increase a raised minimum wage creates the same effect.
“…those earnings would not go only to low-income families, because many low-wage workers are not members of low-income families.”
Exactly. Many of low wage earners are high school and college students, trying to earn money to get them through college.
Few people who make minimum wage are from low income families. While there are many people in that situation, a minimum wage hike will not reduce income inequality in the U.S.
The statistics say it all.
Apparently, the government fails to tell us who earns the minimum wage, college students, illegal immigrants, or others? We can anticipate that illegal immigrants would be a major part of them.