|
Thursday, August 31, 2006
Bernanke on Minimum Wage
We've noted that there's been a spate of establishment-types (and establishments) that have come out denying basic conservative talking points on economic policy. Now, here's new Fed Chairman Ben Bernanke, who says that a raise in the minimum wage will not cause inflation. BNA has the story.
In a written response to questions from Rep. Ginny Brown-Waite (R-Fla.), Bernanke avoided addressing whether he thought the federal minimum wage should be raised, but he said the small number of workers affected would mean that overall labor costs and inflation would see little upward pressure.
Bernanke said fewer than 2 percent of wage and salary workers were paid at or below the federal minimum wage in 2005, so "a modest increase in the minimum wage would likely have only a small effect on labor costs for the economy as a whole and therefore a small effect on overall inflation."
Bernanke goes on to say that economists "disagree" over whether a higher minimum wage causes unemployment. While not ideal, it's better than him saying unequivocally that it does cause unemployment, as he has before Congress in prior testimony.
BNA: Minimum Wage Hike Not Inflationary Federal Reserve Chairman Bernanke Say
Posted by Matt Lewis
|