Monday, February 22, 2016

Anti-Think Tank Thinking About...The Minimum Wage.



What happened when Harry Truman almost doubled the American minimum wage back in the days of yore?

Well, as any thinky-tanked institute living off the fat of the wingnuttian welfare calf won't (under any circumstances) tell you, unemployment went...


"One of the arguments against raising the federal minimum wage from $7.25 an hour today to $15 an hour over five years is that the United States has never had an increase that large. There is solid research to show that modest increases in the minimum help low-wage workers without harming low-wage employers. But there is no similarly rigorous research on the effects of large increases.

There is, however, the example of 1950, when the minimum wage went from 40 cents an hour to 75 cents an hour, an increase of 87.5 percent....


... In December 1949, the month before the raise kicked in, the national unemployment rate was 6.6 percent. By December 1950, when the 75-cent minimum had been in place for nearly a year, it had fallen to 4.3 percent. By December 1951, it was 3.1 percent and by December 1952, it was 2.7 percent.

The higher minimum may not have caused the improvement, but it clearly was part and parcel of it..."

Imagine that!



North Van's Grumps said...

imagine that. could it be related to the timing, six years after the second world war where the winning armed forces and the general population had had enough of the dirty thirties and WAR on three fronts... Germany, Japan and three years later Korea

Anonymous said...

Talking about America and the minimum wage... here's something else to think about. US taxpayers subsidizing low wage workers.

How Andy Puzder's fast-food industry sticks taxpayers with the cost of supporting its workers - January 23, 2017
by Michael Hiltzik, Los Angeles Times

"The Carl’s Jr. and Hardee’s restaurant franchises headed by Andrew Puzder, President Trump’s Labor secretary nominee, are among the nation’s major employers of low-wage workers. As Puzder faces a confirmation hearing scheduled for Feb. 2, it’s proper to examine how much his industry’s employment practices cost the American taxpayer. It’s a bundle."