Recognize the Costs of Increasing Minimum Wage

This article originally appeared at WPRI. Click here to read the full article.

By Ike Brannon

A productive dialog about poverty in America must recognize the need for transparency about policies aimed at addressing the issue. Milwaukee’s Public Policy Institute seems to do the opposite by appealing to the conclusions of a “sophisticated microeconometric model” when describing how the fiscal reform plan it has concocted will reduce poverty in America by 50%.

To do that would be a gargantuan achievement, almost unprecedented in American history and worthy of support even at a price tag twice as high as the one the institute reports. Unfortunately, its promises exceed reality – or any economic consensus – and skip over details that many economists would disagree with.