Democrats in the last few weeks have touted polls showing that huge majorities of Americans support raising the minimum wage. But when the question notes that there are tradeoffs, that the minimum wage increase might cost some jobs, that support falls dramatically. Absent any downside, a minimum wage increase sounds fine. Given the tradeoffs, the hike seems much less attractive.
Republicans have raised the minimum wage before, with then-President George W. Bush putting his signature on the bill that raised the federal minimum wage up to $7.25. Seven years later, America’s labor market is in a far different place. That the White House has chosen economic inequality as its top priority at a time when our biggest problem is the heartbreaking number of long-term unemployed and still-tepid economic growth is puzzling, at best.
If their policy is as good as they claim it is, they ought to be able to argue that the downside of the lost jobs are outweighed by the benefits to those taking home more pay. But that’s not what the White House wants to do, because they know that’s not a debate they’d easily win.
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