A blog about political philosophy, focusing on third party politics, and radical and anarchist topics. Common topics discussed include political theory, constitutional law and civil liberties, civil rights and interstate commerce, health care and insurance policy, labor law and unions, unemployment and wages, currency and monetary policy, taxation and budgets, trade and markets, international relations, U.S. politics and election statistics, the political spectrum, and alternatives to the state
Monday, February 13, 2012
Inflation-Adjusted Minimum Wage vs. Unemployment
My interpretation of this chart is that significant increases in the federal minimum wage tend to cause spikes in unemployment, usually with a delay of up to three years.
Clinton's 2nd term is the only time period that shows a delay of more than a few years. I would attribute this delay of the inevitable to the bursting of the dot-com bubble (March 2000) and 9/11.
The only time period that doesn't fit my conclusion is the Kennedy administration and the early years of Johnson's Great Society.
The minimum wage went up 40% in the last two years of the Bush administration, and an additional 8 million people filed for unemployment over the next several years.
In 2009, Obama expressed interest in raising the wage to $9.50. By my estimates, this would have put another 5 to 6 million people in the unemployment lines.
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