In essence, the 'sawing the bottom rungs off of the ladder" problem. That problem is going to be a lot more acute, obviously, in parts of the country where people start lower on the ladder in absolute dollar terms by virtue of the local economy.
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Vastauksena käyttäjille @BretDevereaux ja @PetreRaleigh
We've already gotten a far-too-big divide between regions with lots of economic dynamism and regions with very little. I worry that raising the minimum wage so high will make this problem worse and as a result, not help all of the people it should help.
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Vastauksena käyttäjille @BretDevereaux ja @PetreRaleigh
By contrast, a big boost to the EITC would put money into those economically weaker regions of the country, potentially helping them to become more economically dynamic and successful.
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Vastauksena käyttäjille @BretDevereaux ja @PetreRaleigh
But, I mean, let's not fool ourselves. We're not doing minimum wage because it's the smart intervention. It isn't and never was. We're doing minimum wage because the costs with it are politically invisible and fall heavily on marginally politically involved (poor) people.
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Vastauksena käyttäjille @BretDevereaux ja @PetreRaleigh
We *could* raise taxes and do income support, but we're not going to do that because it means raising taxes on the urban professionals who make up part of the core Democratic base.
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Vastauksena käyttäjille @BretDevereaux ja @PetreRaleigh
At this point, I'm pretty open to the idea that a less-than-ideal intervention like raising the minimum wage is better than no intervention. But we need to be honest that the minimum wage is on the table because of a political calculus that is not great.
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Vastauksena käyttäjälle @BretDevereaux
Minimum wage is on the table because service workers and their unions spent a decade organizing for it. If you think what these people have fought for is to punish themselves to please the professional base of the Democratic party I'm not sure what to say.
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Vastauksena käyttäjälle @PetreRaleigh
"and their unions" being the operative phrase. Remember, economically, unions organize laborers who are employed both to the cost of management (ok, fair), but also of laborers who are not employed. Yes, the higher minimum wage will be great for those who get it.
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Vastauksena käyttäjille @BretDevereaux ja @PetreRaleigh
But awkward for those who get nothing instead. Like I said, at this point, raising the minimum wage is probably better than nothing. But it's not the best intervention here.
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Vastauksena käyttäjälle @BretDevereaux
It's not a forgone conclusion that jobs will be lost to this intervention in meaningful numbers. It's an assumption. One reason progressives aren't inclined to follow it is that even if this worked perfectly conservatives would still make the same argument against the *next* hike
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Sure and again - I am not arguing for 'do nothing' - I want us to do the same thing (raise incomes at the bottom of the distribution) through different means (EITC expansion). I have no brief for the 'do nothing' crowd, I think they are silly.
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Vastauksena käyttäjälle @BretDevereaux
I don't have a strong opinion about whether this would be equally or more effective, and no prima facie problem with doing it. But I think the idea that wage hikes are on the table for mostly nefarious reasons is frankly offensive, and begs multiple questions.
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Vastauksena käyttäjille @PetreRaleigh ja @BretDevereaux
For one thing, if this were actually an easy sell to the professional base of the Democratic party, it would have been on the table years ago.
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