The Act would raise the federal minimum wage from $7.25 an hour presently to $15 an hour by 2026. True or false: raising the minimum wage is bad for the economy. This column appeared at the Foundation for Economic Education on March 25th, 2019. Raising the minimum wage to $15 is an ineffective way to fight poverty which could have disastrous unintended consequences for the most vulnerable workers. “Our estimates suggest a 10% increase in the minimum wage would reduce household poverty rates by 0.7 to 0.9 percentage points in the highest impact areas,” Anna Godøy and Michael Reich. ... good or bad … If California wants to be smart about fighting poverty, it should follow the lead of the Finns , and consider a Negative Income Tax. 582), is an important corrective to our failure to raise the minimum wage.A $15 minimum wage by 2024 would ensure that a portion of the country’s labor productivity gains are translated into higher living standards for low-wage workers. IRLE Working Paper 106-19r. Written by John Phelan. in Economy. It is long overdue. In conclusion, the proverb, “The Road to Hell is Paved With Good Intentions”, seems to apply to the advocates and proponents of raising the minimum wage to $15.00 per hour. Print. False. In short, a minimum wage increase doesn't impact just minimum wages. Minimum Wage Good or Bad Since the beginning of its introduction, minimum wage has been a problem for many Americans and has caused countless numbers of outrage. Increasing the national minimum wage to $15 by 2024, as proposed in the Raise the Wage Act of 2019 (H.R. The survey coincides with the push by House Democrats to pass the Raise the Wage Act of 2019. Raising minimum wage is not a communist conspiracy, it is merely bad economics (if one choses to believe in the descriptive and predictive value of the models of neo-classical economics) and actually fosters less social welfare (I use the word "welfare" in the sense that economists use it, … (2019). Across the country, campaigns are underway to force states or other jurisdictions, such as cities, to raise their minimum wages. It impacts all wages. on April 01, 2019. The rise would take place in steps mandated for each intervening year. 1. The legislation would increase the federal minimum wage to $15 by 2024, benefiting nearly 40 million workers and their families. Here are six simple reasons why raising the wage makes sense—and should happen TODAY. 5 Reasons Raising the Minimum Wage Is Bad Public Policy. Low-paid need the protection of the minimum wage. It's a shame that governments have to step in and dictate what a business should be paying its workers. 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