May 1996
The Case Against a Higher Minimum Wage
This is a compilation of JEC reports on the issue surrounding the increase in the minimum wage. The economic arguments against an increase in the minimum wage are clearly documented in the following reports.
I. JEC Reports
This report clearly shows that raising the minimum wage actually increases unemployment. It also illustrates that the majority of minimum wage earners are young people still living with their parents, or married individuals in a "two-earner" family.
This four page report details the fact that raising the minimum wage will result in fewer jobs for young and unskilled workers. It also addresses the errors made by the "Card-Krueger study" which incorrectly concluded that raising the minimum wage would actually increase employment.
A critical review of Labor Secretary Robert Reich and the Clinton
Administration's flawed economic case for an increase in the minimum wage. Both the
original "Reich Curve" and the "Nouveau Reich Curve" are explained and discussed.
This one-page brief provides an easy-to-understand explanation of how and why a
minimum wage increase is misguided economic policy. The analysis explores, from an
economic perspective, the inevitable destruction of entry-level jobs and the burden placed
on employers of marginal workers and entrepreneurs by an arbitrarily set federal minimum
wage.
The Minimum Wage: Part 1 and Part 2 (Talking Points -- February 16 and 21, 1995)
These two papers clarify the facts about the minimum wage--who gets it, where
they are likely to work and the income level of their family unit. Facts on the minimum
wage are presented in a framework useful for debating the issue. The talking points
highlight a number of issues including: 1) Most minimum wage earners work at entry-
level jobs; 2) they are not supporting a "family of four"; and 3) most minimum wage
earners remain at the minimum wage for a relatively brief period of time. It becomes clear
that the destructive economic policies of the Clinton Administration should not be
compounded by an increase in the minimum wage.
This four-page paper summarizes a JEC Briefing on the minimum wage presented
by Carlos Bonilla, Chief Economist of the Employment Policies Institute. The history of
the minimum wage and where it has been applied over time is reviewed to shed light on
the Clinton Administration's shallow attempt to misrepresent the burden of evidence on
the minimum wage.
Contrary to the claims of the Clinton Administration, the weight of evidence on the
minimum wage shows that increases in the minimum wage cause unemployment. These
Talking Points provide a useful reference to over 100 relevant studies on the minimum
wage and its effect on workers and the economy.
II. JEC Hearings Excerpts
Vice-Chairman Jim Saxton's opening statement before the JEC hearing on the
Clinton Administration's proposal to raise the minimum wage.
Herman Cain's (CEO of Godfather's Pizza) testimony before the JEC hearing on
the Clinton Administration's proposal to raise the minimum wage.
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