About Barack Obama´s Plan to Raise the Minimum Wage in the USA – 7

Mike Konczal who is a fellow with the Roosevelt Institute published on January 4, 2014 on Ezra Klein´sWonkblog” an article titled “Economists agree: Raising the minimum wage reduces poverty“.

Mike Konczal analyses in this article a new mayor paper published on December 30, 2013 by Arindrajit Dube (an associate professor of economics, UMass Amherst) titled “Minimum Wages and the Distribution of Family Incomes“.

Doug Hall (Director of the Economic Analysis and Research Network – an EPI project) analyses in an article titled “Raising the Federal Minimum Wage to $10.10 Will Not Lead to Job Loss” published on February 12, 2014 the possible effects of raising the minimum wage in the USA.

Doug Hall makes in his article the following remarks: “Based on the economic multiplier effect that results from putting additional income in the hands of lower-income workers, raising the minimum wage will likely have a modest but positive impact on job creation, leading to an additional 85,000 net new jobs when fully phased in. Lower-income earners spend their income more immediately, more completely, and more locally, than do higher income earners, and therefore generate more economic activity. Increasing the wages of 27.8 million workers by $35 billion over the phase-in period generates an additional GDP impact of $22 billion. This finding is consistent with the most recent, highly rigorous, peer-reviewed economic literature based on an analysis of real-world minimum wage increases across counties on state borders that shows essentially no disemployment effect resulting from raising the minimum wage“.

Also Bryce Covert, the Economic Policy Editor for “ThinkProgress“, believes that a raise of the minimum wage to $10,10 would boost the Growth in the USA by $22 Billion.

See for this the article published on December 19, 2013 “Raising The Minimum Wage To $10.10 Would Boost Growth By $22 Billion” on the website of “ThinkProgress“.

John Aziz, the economics and business correspondent at TheWeek.com, estimates that a raise of the minimum wage to $10,10 could subsequently raise 4.6 million Americans out of poverty. And he also believes that a raise of the minimum wage to $10.10 would boost growth and therefore this extra demand created by the workforce’s pay raises  would create more jobs than this minimum wage hike destroys.

See for this the article published on February 13, 2014 “How a $10.10 minimum wage could raise 4.6 million Americans out of poverty“.

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