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Richmans' Trade and Taxes Blog
News stories you may have missed in today’s news and blogs
I.In our blogs in the past, we dealt with the fact that the wage causes unemployment among unskilled workers, particularly blacks, and more particularly black teenagers. In today’s Wall Street Journal (2/23/2015), Prof. Thomas MaCurdy, professor of economics at Stanford university has an op-ed entitled “The Minimum-Wage Stealth Tax on the Poor” describes how, the minimum wage, in addition to causing unemployment, amounts to a sale tax, raising prices of goods consumed by low-income families and falls with greater weight on low-income families. Here is a quote: “But will low-income families earn more from an increase in the minimum wage that they will pay as consumers of the now higher-priced goods? My research strongly suggests that they won‘t.” And “My analysis, using the Bureau of Labor Statistics Consumer Expenditure showed that the 1996 minimum-wage hike raised prices on a broad variety of goods and services. …My analysis concludes that more poor families were losers than winners from the 1996 hike in the minimum wage.”
II. The David Horwitz Freedom Center today listed the “Ten Most anti-semitic campuses in the U.S:
Reference was made to the following site: www.jewhatredoncamppus.org, which listed incidents at Vanderbilt University, Northwestern University, Stanford University, and UC Davis.
Journal of Economic Literature:
Atlantic Economic Journal: