Perhaps you saw the piece that ran in the Buffalo News over the weekend called “Raising the minimum wage is good economics” co-authored by an economics professor at SUNY Buffalo. Well, hopefully you don’t know anyone who is taking that professor’s class, because his reasoning is way off base.
Our Vice-President Ken Pokalsky decided to give a few of the more outlandish claims in the piece the Minimum Wage Reality Check treatment:
“In Seattle, the first city to adopt a $15 minimum wage, unemployment just hit an eight-year low of 3.6 percent.”
Reality Check: Seattle is not at a $15 an hour wage today, the city’s phased-in wage is currently at $11 an hour. Moreover, Seattle wages could be depressing jobs in low wage sectors, while others continue to grow. We need to wait and see. But job counts and unemployment rates with an $11 an hour wage isn’t evidence of what job counts and unemployment rates will be under a $15 an hour wage.
“In fact, Nobel Prize-winning economist Paul Krugman has said,”
Reality Check: The rest of the sentence doesn’t matter. Paul Krugman is a left of center political commentator now, regardless of his prior work. What he says is hardly evidence of anything, other than his blatant bias.
“The City of Buffalo defines a living wage as enough to keep a family of three out of poverty; in 2016 the rate will be $13.06 per hour.”
Reality Check: So what, this applies only to vendors who VOLUNTARILY choose to do business with the city, and only applies to contracts > $50,000.
“Inflation in this country over the last century has averaged over 3 percent.”
Reality Check: Again, what is the point? Over the last 10 years inflation has averaged a smidge over 2 percent. The last 5 years it’s been under 2 percent. So why use a figure 50% higher than recent trends? Unless of course you’re simply trying to deliberately mislead.