Paul Krugman: Raise That Wage


 

Finally, it’s important to understand how the minimum wage interacts with other policies aimed at helping lower-paid workers, in particular the earned-income tax credit, which helps low-income families who help themselves. The tax credit — which has traditionally had bipartisan support, although that may be ending — is also good policy. But it has a well-known defect: Some of its benefits end up flowing not to workers but to employers, in the form of lower wages. And guess what? An increase in the minimum wage helps correct this defect. It turns out that the tax credit and the minimum wage aren’t competing policies, they’re complementary policies that work best in tandem.

Raise That Wage – NYTimes.com

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One Response to Paul Krugman: Raise That Wage

  1. Pingback: Changes In Tax Structure Creating Angst Among Low, Middle Class | Prepper Podcast Radio Network

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