Wednesday , September 20 2017
Home / Miles Kimball / The Economist on Minimum Wages Versus Wage Subsidies

The Economist on Minimum Wages Versus Wage Subsidies

Summary:
I am glad to have the Economist reinforce the arguments against minimum wages that I made in "Inequality Is About the Poor, Not About the Rich." Here is the Economist's view:Yet however well people are taught, their abilities will remain unequal, and in a world which is increasingly polarised economically, many will find their job prospects dimmed and wages squeezed. The best way of helping them is not, as many on the left seem to think, to push up minimum wages. Jacking up the floor too far would accelerate the shift from human workers to computers. Better to top up low wages with public money so that anyone who works has a reasonable

Topics:
Miles Kimball considers the following as important:

This could be interesting, too:

Anders Aslund writes The Last Hurdle for Ukraine’s Recovery

shamyshabeer writes Pension Storm Warning

Bradford DeLong writes VIrtues and Flaws: NAFTA, and Economists’ Views of NAFTA

Bradford DeLong writes Should-See: Janet Napolitano et al.: The Future of NAFTA and the State of U.S. Mexico Relations

The Economist on Minimum Wages Versus Wage Subsidies

I am glad to have the Economist reinforce the arguments against minimum wages that I made in "Inequality Is About the Poor, Not About the Rich." Here is the Economist's view:

Yet however well people are taught, their abilities will remain unequal, and in a world which is increasingly polarised economically, many will find their job prospects dimmed and wages squeezed. The best way of helping them is not, as many on the left seem to think, to push up minimum wages. Jacking up the floor too far would accelerate the shift from human workers to computers. Better to top up low wages with public money so that anyone who works has a reasonable income, through a bold expansion of the tax credits that countries such as America and Britain use.

Miles Kimball
Miles Kimball is Professor of Economics and Survey Research at the University of Michigan. Politically, Miles is an independent who grew up in an apolitical family. He holds many strong opinions—open to revision in response to cogent arguments—that do not line up neatly with either the Republican or Democratic Party.

Leave a Reply

Your email address will not be published. Required fields are marked *