Minimum Wage Economics

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Toolsmith
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Minimum Wage Economics

"Zak Ringelstein @RingelsteinME
A new report shows that a Mainer working 40 hours a week would need to make $18.73 an hour to afford a 2-bedroom apartment. Yet our federal minimum wage is $7.25.

We urgently need to raise the minimum wage to $15 an hour. #mepolitics"

So, what happens if the minimum wage is raised to $15/hr?

Does that apartment still cost the same, or does the rent rise to meet the new demand?

Would adding more apartments bring the rental cost down?

The idea that giving every taker the money to rent that apartment will change that and nothing else... seems odd to me.

Economike
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Obviously, Zak Ringlestein is

Obviously, Zak Ringelstein is half-hearted and conflicted in his concern for Mainers.

Were he truly sincere, he'd propose $18.73 as the minimum wage.

He sounds phony to me.

mainemom
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The Long-run Effects of Anti

The Long-run Effects of Anti-Poverty Policies on Disadvantaged Neighborhoods

In this new study, economists David Neumark and Brittany Bass of the University of California, Irvine, and Brian Asquith of the National Bureau of Economic research, measure the longrun effects of minimum wages, the Earned Income Tax Credit (EITC), and welfare programs on reducing poverty in disadvantaged areas.

This research is necessary because, according to Neumark et al., debates about these anti-poverty policies focus on short-term effects of individuals and their families instead of disadvantaged areas more broadly. The researchers simultaneously study four effects of minimum wages, EITC, and welfare programs: earnings, employment, poverty, and reliance on public assistance. The resulting data are used to estimate the effects of these policies on disadvantaged neighborhoods over the past three decades, which offers insight into how policy influences their long-run success or failure.

The researchers’ most notable conclusion is that neither a higher minimum wage nor more-generous welfare benefits have reduced poverty rates in the country’s most-disadvantaged neighborhoods. In fact, the authors find some evidence that poverty rates and the share of residents on public assistance have increased alongside a rising minimum wage. (They also find some evidence that, for disadvantaged neighborhoods, the long-run effect of more-generous welfare benefits has been to increase poverty and receipt of public assistance.)

I'm waiting for the Press Herald to write about this research.
I'm waiting for the Maine People's Alliance to admit error.
I'm waiting for Maine Democrats to acknowledge they might be wrong.

But I'm not holding my breath.

Melvin Udall
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Could you get THEM to hold

Could you get THEM to hold their breath instead? Oh wait; they already do it regularly. Hence the lack of oxygen to the brain.

Toolsmith
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Joined: 07/14/2016 - 11:22am
Another part of the reason:
anonymous_coward
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There's an article going

There's an article going around about the how the minimum wage could not afford you a 2BR apartment, which is unfortunately getting a ton of traction, even though every aspect of the article is poorly written/thought out.

Sigh.

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