Ensuring the minimum wage keeps up with economic growth | Opinion
Updated Feb 28, 2021;
Posted Feb 28, 2021
It may seem like a lot, but it’s not the most important change in the bill.
(AP Photo/J. Scott Applewhite)
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Supporters argue a higher minimum wage would translate into higher incomes for millions of low-wage employees, such as restaurant waiters, retail salespeople and child care workers, and thereby lift a lot of people out of poverty. Opponents claim it would hurt businesses and lead to a lot of job losses.
As an economist who studies labor markets and income inequality, I believe both claims exaggerate the impact and miss a key point of what the minimum wage is meant to achieve. The current debate offers a perfect opportunity to restore the wage floor’s original purpose, as laid out by FDR over 70 years ago.