Minimal wage legal guidelines throughout a pandemic – Marginal REVOLUTION

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From Michael Strain at Bloomberg:

In July 2019, the nonpartisan Congressional Price range Workplace estimated {that a} $15 minimal wage would eradicate 1.3 million jobs. The CBO additionally forecast that such a rise would cut back enterprise revenue, increase client costs, and gradual the economic system.

The U.S. economic system will likely be very weak all through 2021. The nation will want extra enterprise revenue, not much less; extra jobs, not fewer; and quicker, not slower, financial progress. A $15 minimal wage would transfer the economic system within the unsuitable path throughout all these fronts.

I absolutely agree, and actually would go additional.  On Twitter I wrote in response to Noah:

Certainly in a pandemic these businesspeople are proper and the amassed non-pandemic analysis literature doesn’t apply a lot, proper? Just about all fashions indicate we must always reduce the minimal wage, if solely quickly, for small enterprise on the very least.

Put in no matter unique assumptions you want, a primary mannequin will spit out a decrease optimum minimal wage for 2020-21, once more for small enterprise on the very least.  That is the recommendation that main Democratic economists needs to be providing to Biden.

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