tag:blogger.com,1999:blog-8831417822102614135.post8340276294387381004..comments2023-12-03T17:13:43.167-06:00Comments on The Regular Guy Believes: Milton Friedman on the Minimum WagePaul David Bauerhttp://www.blogger.com/profile/15576594022075483289noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-8831417822102614135.post-24010483302940363592013-02-20T11:10:07.632-06:002013-02-20T11:10:07.632-06:00The article the commenter is referring to details ...The article the commenter is referring to details what is discussed as a "debate" among economists as to the effects of the minimum wage on employment. The debate is supposedly between two sets of economists, Card and Krueger on the pro-minimum wage side, and Neumark and Wascher on the anti-minimum wage side. But referring to it as a "debate" is misleading. What really happened is that Neumark and Wascher thoroughly debunked the infamous 1994 Card-Krueger study of New Jersey fast food restaurants which purported to show (via a telephone survey of restaurant managers) that a rise in the minimum wage had somehow caused employment in minimum wage jobs at fast food chains to increase. Using actual payroll records of the same NJ restaurants, they showed that the effect had been the opposite, a drop in employment, exactly as the classical economics model of Friedman predicted. The study can be found here:<br /><br />http://www.nber.org/papers/w5224.pdf?new_window=1<br /><br />Another similar debunking is here:<br /><br />http://epionline.org/studies/epi_njfastfood_04-1996.pdf<br /><br />Certainly there are myriad reasons for the decline of low-skilled jobs in America, particularly in manufacturing. But the minimum wage isn't helping, and you'd have to have your eyes closed when you drive through an inner city like Milwaukee's, which I do every day, to believe otherwise.<br /><br />Paul David Bauerhttps://www.blogger.com/profile/15576594022075483289noreply@blogger.comtag:blogger.com,1999:blog-8831417822102614135.post-30890055079152275392013-02-20T10:08:54.971-06:002013-02-20T10:08:54.971-06:00Like many areas of human inquiry, Economics theory...Like many areas of human inquiry, Economics theory has evolved much since the 1970's. Research and debate continues but one thing is certain, Friedman's absolute view that a minimum wage costs job in all cases and is universally and irrevocably bad, is no longer valid. On 11/24/12 The Economist magazine published an article entitled, "The argument in the floor". It might help you get up to speed...<br />http://www.economist.com/news/finance-and-economics/21567072-evidence-mounting-moderate-minimum-wages-can-do-more-good-harmAnonymousnoreply@blogger.com