Associate Professor of Economics at Duquesne University
Con to the question "Should the Federal Minimum Wage Be Increased?"
"Raising the minimum wage does not increase the value of the worker's labor. It increases the cost of the worker's labor. And as everyone knows, the more something costs, the less of it we buy...
In a bizarre twist, raising the minimum wage hurts the very people it aims to help. As detailed in a forthcoming paper to be published by the Mercatus Center, national employment data from 1975 through 2012 show that on average, a 10 percent increase in the minimum wage has been followed by no change in employment among college-educated workers, a half-percentage point increase in unemployment for those with high school diplomas, and a one percentage point increase in unemployment for those without high school diplomas. Young people who have yet to finish high school are hit hardest of all. They have to contend with a two percentage point increase in unemployment, and as a result many are unable to find summer employment – employment that would help them acquire the skills to find better work in the future.
This is what happens when economics takes a back seat to political considerations. The feel-good rhetoric of increasing the minimum wage outweighs the economic reality that there is no such thing as a free lunch. Every cost must be paid by someone, and those who will pay for a minimum wage hike are the very people we are trying to help."
Cowritten with James R. Harrigan, "Raising the Minimum Wage Is No Free Lunch," usnews.com, Oct. 21, 2013
Experts Individuals with PhDs, JDs, or equivalent advanced degrees in fields relevant to the minimum wage; and top-level federal government officials significantly involved in the minimum wage and related issues. [Note: Experts definition varies by site.]
Involvement and Affiliations:
Associate Professor of Economics, Duquesne University
Visiting Scholar, Mercatus Center, George Mason University
Policy Advisor, The Heartland Institute
Co-Founder and former Chief Analytics Officer, Repliqa
Former Chief Analytics Officer and former Chief Financial Officer, Parabon Computation
Co-Founder and former President, Paragon Software
Former Financial Analyst, The Burney Company
Former Forensic Economist, Cline-Davies Research Alliance
Former Visiting Assistant Professor, West Virginia University
PhD, Economics, State University of New York at Albany, 1994
BS, Economics, Alex G. McKenna School of Business, Economics, and Government, Saint Vincent College, 1987