I want to thank our President. Doubly.

[ProSense]

28. Over 600 Economists Sign Letter In Support of $10.10 Minimum Wage

Over 600 Economists Sign Letter In Support of $10.10 Minimum Wage

Over 600 PhD economists have signed an open letter—initiated by Economic Policy Institute President Lawrence Mishel and Harvard University professor Lawrence Katz—to the president and Congress in support of the Harkin-Miller Fair Minimum Wage Act of 2013. Signatories include 7 Nobel Prize winners and 8 former presidents of the American Economic Association.

The letter urges lawmakers to immediately enact a three-step raise of 95 cents a year for three years, which would mean a minimum wage of $10.10 by 2016, and then index it to protect against inflation. This increase would mean that minimum-wage workers who work full time, full year would see a raise from their current salary of roughly $15,000 to roughly $21,000. The proposals would also raise the tipped minimum wage to 70 percent of the regular minimum wage.

“The fact that so many economists support this legislation makes it a no-brainer for Congress,” said Mishel. “Raising the minimum wage to $10.10 would restore the value that it’s lost to inflation over the years, giving working families a raise while providing modest economic stimulus.”

President Obama has endorsed the Harkin-Miller bill and is expected to call for an increase to the minimum wage in his upcoming State of the Union address.

http://www.epi.org/press/600-economists-sign-letter-support-10-10/

Economist Statement on the Federal Minimum Wage

Dear Mr. President, Speaker Boehner, Majority Leader Reid, Congressman Cantor, Senator McConnell, and Congresswoman Pelosi:

July will mark five years since the federal minimum wage was last raised. We urge you to act now and enact a three-step raise of 95 cents a year for three years—which would mean a minimum wage of $10.10 by 2016—and then index it to protect against inflation. Senator Tom Harkin and Representative George Miller have introduced legislation to accomplish this. The increase to $10.10 would mean that minimum-wage workers who work full time, full year would see a raise from their current salary of roughly $15,000 to roughly $21,000. These proposals also usefully raise the tipped minimum wage to 70% of the regular minimum.

This policy would directly provide higher wages for close to 17 million workers by 2016. Furthermore, another 11 million workers whose wages are just above the new minimum would likely see a wage increase through “spillover” effects, as employers adjust their internal wage ladders. The vast majority of employees who would benefit are adults in working families, disproportionately women, who work at least 20 hours a week and depend on these earnings to make ends meet. At a time when persistent high unemployment is putting enormous downward pressure on wages, such a minimum-wage increase would provide a much-needed boost to the earnings of low-wage workers.

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.

Sincerely,

- more -

http://www.epi.org/minimum-wage-statement/