Minimum Wage Increases: Economic Snake Oil

January 29, 2013
Senator Stephen Sweeney (D-Gloucester) has the cure for our economic ailments, ...

Senator Stephen Sweeney (D-Gloucester) has the cure for our economic ailments, …

Checking out the news of the day on facebook, a friend posts this article for our consideration, courtesy of ThinkProgress:

New Jersey Governor Vetoes Minimum Wage Increase

The New Jersey Governor at issue is Republican governor Chris Christie. The tone is not celebratory. My facebook friend lamented: “Really, he might as well just go re-flood people’s homes.” Is it that bad? I’m not convinced.

The thrust of the article is that the people of New Jersey would have bathed in fountains of prosperity, if only the governor would have been willing to force employers to pay their employees more money. The bill, as it was passed, would have increased the minimum wage from its current $7.25 to $8.50. Christie vetoed the bill conditionally, saying he would sign it if the increase were lowered to $8.25 and phased in over three years. This was not good enough for Pat Garofalo, the author of the ThinkProgress piece, who reasoned:

As the New Jersey Policy Perspective noted, “the first year increase proposed by the governor of 25 cents will be erased by inflation by the time the third year kicks in its 25 cents.” Here are more benefits that Christie denied to working New Jerseyans:  Read the rest of this entry »