I found this very interesting as conservatives are arguing to decrease or eliminate the minimum wage.
From economist Greg Mankiw:
The minimum wage has a much larger role now than it did three years ago, in large part because of the legislated increase in the minimum wage from $5.15 to $7.25 an hour. For example, comparing the 2010 data with the 2007 data, one finds the following:
- The percentage of all hourly-paid workers paid at or below the minimum wage rose from 2.3 to 6.0 percent.
- The percentage of part-time workers paid at or below the minimum wage rose from 5 to 14 percent.
- The percentage of teenage workers paid at or below the minimum wage rose from 7 to 25 percent.
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I always felt that Minimum Wage should be tied to Congressional pay. When Congress gives itself a raise, the minimum wage rises a like percentage.
I love it.