Magazine March 8, 2021, Issue

Minimum-Wage Complexities

McDonald’s employees demand a $15 minimum wage at a protest in Las Vegas, Nev., June 14, 2019. (Mike Segar / Reuters)
A surprisingly convoluted redistribution scheme

Democrats are moving fast to advance some of their biggest policy goals under the guise of COVID-19 relief. One of their most contentious proposals is to increase the minimum wage to $15 an hour by 2025, with the phase-in beginning this year.

That is an exceedingly risky idea. It could reduce employment by more than a million jobs. And the effects would reverberate well beyond the employment impact, because minimum-wage hikes have a variety of convoluted, poorly understood, and unpredictable knock-on effects. If we want higher wages at the bottom of the labor market, there are better ways to create them.

Let’s

Something to Consider

If you enjoyed this article, we have a proposition for you: Join NRPLUS. Members get all of our content (including the magazine), no paywalls or content meters, an advertising-minimal experience, and unique access to our writers and editors (through conference calls, social media groups, and more). And importantly, NRPLUS members help keep NR going.

If you enjoyed this article and want to see more content like this, we have a proposition for you: Join NRPLUS.

 

Join Now

In This Issue

Articles

Features

Books, Arts & Manners

Sections

Letters

Letters

Readers react to commentary on the federal legalization of marijuana, Zionism, and academic credentials.
The Week

The Week

That light you may have seen in the night sky, brighter than Halley’s Comet, steadier than the aurora borealis, is the Lincoln Project blowing up.

Recommended

The Latest

Going Bust

Going Bust

The significant decline in American births should be a matter of intense public concern.