The federal minimum wage should be raised to $15 an hour

Summary from Round 2Pro - 1. Economists are not agreed on the of the effects of a minimum wage.2. The literature is split. We need more data by way of a large scale experiment.3. Too small a change to the minimum wage is unlikely to give use clear data. The federal minimum wage should be raised to $15 /hour.Con - Oops - no arguments Regarding CON’s arguments in Round 3The cost of living There are 2 problems with Con’s arguments about the cost of living.1. CON argues there should be no FEDERAL minimum wage, which is outside the scope of this debate. He also does not suggest a different value.2. Con says that a $15 minimum wage will hurt employers or overpay workers. Both these statements have no data to back them up. It seems that Con is suggesting that the FEDERAL MINIMUM WAGE should be decided by each state or be different in each state. This is not the definition of a FEDERAL minimum wage. The idea of a FEDERAL MINIMUM is that it is decided nationally, and states can choose to have local or state legislation that mandates an increase above this. In CON’s example the state of New York could mandate a $20 minimum if they thought the cost of living merited an increase to improve the lot of people in their state. CON recognizes that states can have higher minimums than the federal minimum. CON does not seem to recognize that setting a federal minimum wage is designed to get people at a better standard of living in all states. CON seems to be arguing that there should be NO federal minimum wage. This is outside the realm of this debate. Note that CON says “Something such as minimum wage is best left to the local counties or municipalities”, which implies that the Federal Government should not set any minimum wage. Some who argue against paying workers a living wage say that the cost of living would go way up for all of us if we raised the federal minimum wage to $15. I am glad that Con did not try this argument as it is directly refuted by the evidence.Will lead to job lossCon makes up a fictional scenario with fictional numbers. Any employer with numbers like those given by con would already be out of business. Please give us real numbers for a real business in a real state in a real world.CON gave a completely fictional “example” to try to sway the reader about an important question. “Will an increased minimum wage lead to any significant job loss?”One source referenced by CON is “Do Economists Agree on Anything? Yes!” which concludes that “The efficacy of the minimum wage continues to divide economists.” [1]The data presented say that 48.1% of economists want to decrease or eliminate the minimum wage, while 52.0% are in favour of it. (Note this does not specify local or federal minimum wage). Not only were 52% in favour of a minimum wage, but 37.7% of economists were in favour of a substantial increase. NOTE This is from Table 3 in first source that CON presented.The US Department of labor refutes CON’s claim. Here is what they say “In a letter to President Obama and congressional leaders urging a minimum wage increase, more than 600 economists, including 7 Nobel Prize winners wrote, "In recent years there have been important developments in the academic literature on the effect of increases in the minimum wage on employment, with the weight of evidence now showing that increases in the minimum wage have had little or no negative effect on the employment of minimum-wage workers, even during times of weakness in the labor market. Research suggests that a minimum-wage increase could have a small stimulative effect on the economy as low-wage workers spend their additional earnings, raising demand and job growth, and providing some help on the jobs front.” [2]In the special case of tipped workers who get both the minimum wage plus tips (so they receive even more than the minimum) the department of labor states: “As of May 2015, employers in San Francisco must pay tipped workers the full minimum wage of $12.25 per hour — before tips. Yet, the San Francisco leisure and hospitality industry, which includes full-service restaurants, has experienced positive job growth this year, including following the most recent minimum wage increase.” [2]There are many more studies that come to the same conclusion: There is no evidence that increasing the federal minimum wage will cause job loss or hurt job growth. The NATIONAL BUREAU OF ECONOMIC RESEARCH, which produces policy papers for government and industry, has an important 2008 paper on optimizing the value of the minimum wage.[3]It talks about supply, demand, competitive equilibrium and tax policy, and it takes the complexity of the issues seriously. Looking at all these factors we need a federal minimum wage of $15 so we can learn how to adjust taxes and welfare to give the most good to the most people.Does very little to help the poorCON seems to say that because the minimum wage does not fix every problem for the poor, we should abandon it as a tool for helping low wage earners. That is like saying that because everybody dies we should stop spending money on hospitals and doctors.CON suggest a low minimum wage BECAUSE WE ARE NOT DOING ENOUGH. This is a fallacy. In response to CON and people with similar logic we need to increase the federal minimum wage to $15 (and indexed for cost of living)CON says that 60% of those in poverty are not in the workforce. This is true, many are the children and non working spouses of the working poor. Raising the wealth of poor communities will help many who are not employed.EITC CON says there should be a tax credit for those earning so little that a minimum wage increase would affect them. I agree that a comprehensive strategy to help the poor needs to include MORE than the minimum wage. Our debate, however, is about the fact that the federal minimum should be increased to $15.CON’s (false) conclusions Con points to his false understanding about the cost of living and minimum wage. Con wrongly claims that a minimum wage increases unemployment Con rightly claims that a minimum wage increase is not the ONLY way to help the poor. Con suggests tax breaks (which are outside the scope of this debate). The facts prove CON wrong. The federal minimum wage should be raised to $15 an hourRegarding CON’s “rebuttals” - The federal minimum wage should be raised to $15 an hourDavid Card’s study - CON says the study didn’t show any proof that the minimum wage increase was a good thing. I’m sure that those receiving the increase were happy to receive it. Con makes a nonsense comment that it compared 2 cities with similar cost of living. This is the way science works, you try to minimize changes in every variable but the one you are studying. I’m glad CON pointed out that this is good science. His comment is a pont in favour of my understanding of the subject, not his.Con says that Alan Kruger was against raising the minimum wage to $15. Since he gives no reference, I’ll assume he is referring to the 1992 study in my references. I agree that $15 / hour would be excessive in 1992 when the study was between $4.25 and $5.05 per hour.Price Increases If the minimum wage were increased to $15 an hour, prices at fast food restaurants would rise by an estimated 4.3 percent.[5] That would mean a McDonald’s Big Mac, which currently goes for $3.99, would cost about 17 cents more, or $4.16. This is a trivial amount. If I buy a Big Mack meal every day of the week my total cost increase is $1.19 per week. The price increases would be trivial.CON states “I'll admit I'm a bit confused now.”CON seems to have missed my main premise that : The federal minimum wage should be raised to $15 an hour.This is because we need better information about the cause and effect relationship between minimum wage and other economic indicators. A federal minimum wage increase to this level would give good data for policy makers and a better understanding for economists. Most of CON’s arguments prove my point that we need good data that we can only get from a large increase in the federal minimum wage. For example, one main source for CON is a blog page from a software developer and CEO of a software company.[6] He is possibly a great guy, but not an authority on government policy and economics.CON basically ignores the position of the US Dept. Of Labor.Please read here to see them refute his fallacies one by one.http://www.dol.gov...Vote PRO The federal minimum wage should be raised to $15 an hour.[1] http://ew-econ.typepad.fr...[2] http://www.dol.gov...[3] http://journalistsresource.org...[4] http://davidcard.berkeley.edu...[5] www.thinkprogress.org/economy/2015/08/03/3687171/15-minimum-wage-big-mac/[6] http://wheniwork.com...