14.
300,000 vs. 600,000 Jobs Lost
In 1989, when the Bush administration was considering an increase in the
minimum wage law from $3.35 to $3.85, Congress pushed for an increase
to $4.25. In the haggling and public relations battle over the increase,
the administration cited studies suggesting that the increase desired by
Congress would cost 600,000 jobs. Bush further argued that his proposed
increase to $3.85, by contrast, would cost "only"(!) 300,000 jobs.
The great thing in this debate was the widespread recognition that
the increase in the minimum wage would in fact cost jobs.
For maybe the first time, it was readily admitted by all concerned that
substantial job losses would occur whatever the amount of the increase,
and the negotiations were being settled by who was willing to accept
how many lost jobs.
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