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    Minimum Wage Has Followed the Productivity And Prices of Minimum Wage Jobs

    Proponents of increasing the minimum wage have argued that the current minimum wage of $7.25 per hour is drastically lower than it should be and that the minimum wage has not kept pace with inflation and productivity growth. Some have claimed that the minimum wage would be $17 today, or … More

    The Road to a $12.50/Hour Minimum Wage in D.C. Is Paved with Good Intentions

    If only the D.C. city council understood good intentions do not ensure good results. Council members are debating four different proposals to raise the city’s minimum wage from $8.25 per hour ($1 above the federal minimum) to between $10.25 and $12.50 per hour. Proponents of the legislation want to help … More

    Why Should the Government Prevent Union Members from Earning RAISEs?

    A few years ago, President Obama declared he believed “in people getting rich based on performance and what they add in terms of value and the products and services that they create.” United Food and Commercial Workers (UFCW) Local 23 never got this message. The union fought in court to … More

    Are Americans Better Off Today Than They Were Four Decades Ago?

    Many pundits and politicians argue that middle-class incomes have stagnated over the past generation. But more accurate data show that the typical household’s income has risen by at least one-fifth in recent decades. Former Clinton Labor Secretary Robert Reich expressed this view when he argued that we have gone through … More

    Footnote Failure: Gap Between Productivity and Pay Is Overstated

      Paul Krugman and many others argue that compensation has not grown as fast as productivity. However, most of the apparent gap between the growth of pay and the growth of productivity is a statistical illusion. On the surface, the numbers appear to show pay and productivity diverging. Hourly wages … More

    What Productivity Really Means

    A recent Heritage post responded to an article in The New York Times that suggested we be less productive. One comment challenged our rebuttal: The takeaway you should have gotten is that we are so addicted to the concept of efficiency that we forget that in some instances being more … More

    American Workers Deserve a RAISE

    LIFTING THE PAY CAP ON 8 MILLION WORKERS Unions Cap Their Member’s Pay Setting a Wage Ceiling: Currently union contracts set both a wage floor and a wage ceiling. Unionized employers may not give productive workers pay raises outside the collectively bargained contract. Seniority-Based Pay: Unions usually demand that employers … More

    Free Trade Fact of the Day

    A core belief of the hard core left is that free trade has killed American manufacturing and that increased protectionism is key to bringing it back. Harold Meyerson forwards this world view in today’s Washington Post: The loss of several million manufacturing jobs during the Bush presidency coincides with the … More