Thursday, May 11, 2006

The Minimum Wage and Small Business


Increasing the minimum wage leads to higher employment and small business growth? Lance McCord seems to overstate the case. The data actually suggests that states concerned enough about the poor working class to increase the minimum wage are better at job creation and business creation than what I call the hick states that don't care. The data does not show a cause-and-effect relationship with raising the minimum wage leading to job and business growth. Still, many studies have shown there is very little adverse effects from raising the minimum wage and many benefits. I cannot find online right now two separate studies I've read by conservative economists who went looking for the bad effects of raising the minimum wage and found on balance it had more benefits than they expected and was a good policy. This is also the findings of liberal economists.


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