This year kicks off with minimum wage hikes across 21 states. Economists have long documented that while minimum wage increases often boost wages for those who remain employed, there are no free lunches. Extensive research shows minimum wage increases to high levels tend to hurt new and low-skilled workers as businesses respond by cutting hours or hiring opportunities.
I mainly agree, but do wish that some of the concern for the harm done to workers by minimum wages were invested in promoting better ways to transfer income to them, like higher EITC (or switching the financing of social insurance to a VAT instead of the wage tax. The emphasis on the downsides of minimum wages can easily be interpreted to opposition to transferring income to low-paid workers, period.
I mainly agree, but do wish that some of the concern for the harm done to workers by minimum wages were invested in promoting better ways to transfer income to them, like higher EITC (or switching the financing of social insurance to a VAT instead of the wage tax. The emphasis on the downsides of minimum wages can easily be interpreted to opposition to transferring income to low-paid workers, period.