What Can Reduce Poverty ? (hint: not minimum wage,) (www.realclearpolitics.com)

Though the Senate parliamentarian rejected their efforts to include a $15-an-hour minimum wage in President Biden’s so-called COVID-19 relief bill, Senate Democrats are scrambling for a way to include it. Their efforts demonstrate the importance of this issue for the progressive left. But should they succeed, would such a measure truly help struggling Americans as promised?

And what exactly is that promise? Echoing his socialist ally Sen. Bernie Sanders, Biden recently argued that “[n]o one should work 40 hours a week and live in poverty.” Sanders and Biden also speak of a “living wage.” But, if the goal is reduced poverty and increased wages, having government mandate a dramatic wage increase is not the way to get there. Job creation is the way to do it.

Let’s skip the politics and look at the data. The Census Bureau began reporting the poverty rate in 1959. Over those 60-plus years, the federal minimum wage has increased a number of times, but not in 2019. Yet, in 2019, the poverty rate plummeted 1.3 percentage points, the largest single-year decline in over 50 years, hitting a historic low of 10.5%.

Minority poverty saw the largest declines. Black poverty fell by two percentage points, Hispanic poverty fell by 1.8, and Asian poverty fell by 2.8. For the first time ever, black unemployment dropped below 20%. Child poverty dropped to 14.4%, the lowest rate since 1973.  

Though it got little attention, “income inequality” also declined – and for the second year in a row – as the share of income held by the bottom 20% of earners increased by 2.4%. More than 4.1 million people emerged from poverty in 2019, the largest number since 1966. Would a $15 minimum wage lift that many people out of poverty? Not even close.

The nonpartisan Congressional Budget Office recently issued a report on the Democrats’ “Raise the Wage Act.” It found that raising the minimum wage to $15 would lift only 900,000 people out of poverty, less than a quarter of those who escaped poverty in 2019….[    ]

What do you think?

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answer
10 months ago

All congressional members should agree to work for $15 an hour as show of solidarity.

hijack
10 months ago

When will libturds learn that people’s well being increases when free markets are allowed to be free. Capitalism works!

tara talks
10 months ago

A minimum wage raises prices on everything. All the sudden your increased hourly job wage also means your child care cost have just increased … and usually by more than the income you generate. Nothing is in a vacuum folks!

cartridge
10 months ago

The numbers show that the ‘Bad Orange Man’ was one of the best presidents for job creation … for all sectors of our society but especially the working class. Democrats just want to make the working class dependent upon the government for handouts so they can stay in power.

clean slate
10 months ago

Mandatory minimum wage increases will only force small business to hire fewer people in order to stay in business. Fewer jobs won’t help reduce poverty.

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