File spoon-archives/marxism.archive/marxism_1996/96-03-marxism/96-03-08.000, message 259


Date: Sun, 3 Mar 1996 22:39:54 -0400
From: dhenwood-AT-panix.com (Doug Henwood)
Subject: Re: Labor Party,USA -- A question


At 8:13 PM 3/3/96, Brian Carnell wrote:

>The only thing minimum wages do is increase unemployment for non-union and,
>to a lesser degree, members of unions.  Can you please explain how
>unemployment benefits non-union workers???

The evidence for this ranges from flimsy to nonexistent. Even proponents
argue that a 10% increase in the minimum wage results in a 3% job loss for
minimum wage workers, meaning that 97% of m.w. workers are better off with
such an increase. David Card of Princeton has done compelling work arguing
that m.w. increases have *no* effect on employment. Of course, his studies
have been questioned by economists in the pay of the fast food industry.

Doug

--

Doug Henwood
Left Business Observer
250 W 85 St
New York NY 10024-3217
USA
+1-212-874-4020 voice
+1-212-874-3137 fax
email: <dhenwood-AT-panix.com>
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