New Study: Minimum Wage Increases Do Not Boost the Economy

WASHINGTON - Today, the Employment Policy Research Institute (EPI) has announced a new research published by Dr. Joseph J. Savia, an economist at the US military academy at West Point. The rise in wages is of little use to stimulate the entire economy. This survey also shows that rising wages has a negative impact on some low-tech industries' gross domestic product (GDP).

As a result of managing domestic employment trends and other variables using data from the Census Bureau and the Economic Analysis Department, Dr. Sabia said that a 10% rise in the minimum wage will result in a 2% to 4% reduction in domestic GDP . Low-Tech Industries These industries offer jobs to inexperienced workers including wholesale, durable manufacturing, warehousing and warehousing, leasing and leasing, and administrative and waste industries.

From the perspective of overall GDP, Dr. Savia discovered that the growth in minimum wage had no positive effect. A 1-page policy description explaining the result of this research can be obtained from here. http://epionline.org/studies/Failed_Stimulus_PolicyBrief_web.pdf

Michael Salman, a researcher at the Employment Policy Research Institute, said: "Supporters consider raising minimum wages as stimulating or economical, but the evidence shows others." Economic growth may actually adversely affect business in certain industries. "

Dr. Sabbia's research is very important especially in countries that are considering strengthening the wage law and raising the minimum wage. In addition to the negative impact on employment by raising the minimum wage, policy makers must also consider the damage they may give to a particular industry and their ability to provide entry-level employment .

"This research shows that raising the minimum wage is a bad idea economically," Saltsman continued. "The legislature should carefully review proposals such as the growth of minimum wages etc. These proposals have failed to improve the economic situation and will definitely lead to further unemployment."

It is good for our economy to raise the minimum wage. Increasing the minimum wage is necessary not only to increase worker income, but also to stimulate demand and promote economic development, but it reduces sales and reduces the cost of taxpayers' low-income employers Reduce the company to the highway. , High human capital model. Despite these positive gains, and unfortunately today's minimum wage is much lower than the latter half of the 1960s, the Senate is to raise the federal minimum wage from $ 7.25 per hour to $ 10.10 per hour You will vote for it. The same unfounded argument of going out means that the minimum wage will reduce employment. Today's unemployment rate is over 7%, so we expect these types of discussions to reach the level of fever.

As our economy continues to recover, raising the minimum wage can provide a driving force that is very necessary for the income of low-wage workers. As the minimum wage goes up, you can see 35 million workers from all over the country get wage, they can live better and live a more economically safe life. When discussing the minimum wage, this is the degree of influence the policy makers should consider.

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