The Atlanta Fed's macroblog provides commentary on economic topics including monetary policy, macroeconomic developments, financial issues and Southeast regional trends.
- BLS Handbook of Methods
- Bureau of Economic Analysis
- Bureau of Labor Statistics
- Congressional Budget Office
- Economic Data - FRED® II, St. Louis Fed
- Office of Management and Budget
- Statistics: Releases and Historical Data, Board of Governors
- U.S. Census Bureau Economic Programs
- White House Economic Statistics Briefing Room
July 20, 2006
The Chairman Speaks: Bernanke vs. Krugman On The Minimum Wage
Paul Krugman last week, via Hypothetical Bias:
Krugman says raise the minimum wage to reverse growing income inequality
Krugman says ($):
Can anything be done to spread the benefits of a growing economy more widely? Of course. A good start would be to increase the minimum wage, which in real terms is at its lowest level in half a century.
Ben Bernanke yesterday:
... I agree that inequality is potentially a concern for the U.S. economy...
That, however, is a development, a trend, that's been going on for about 25 years now, according to most of the studies. And it's therefore a big challenge to think about what to do about it....
But I do think that, fundamentally, the increased importance of skilled jobs and of technology in our society puts a higher premium on people with more education, more experience and more skills.
And I think that, really, the only long-term solution to this problem is to try to upgrade the skill levels of our workers...
Then, on to a question about the minimum wage specifically:
The research on this is controversial. Some people argue that the effect is very small. Others think it's larger.
My inclination is to say that you'd like to find ways of increasing the return to work which don't have the effect of potentially shutting some people out of the workforce.
And so I think I would agree that -- and I've said this in previous testimony -- that the earned income tax credit, which provides extra income to people who are working, and skills and training, increased training for increased skills and productivity, are in my opinion probably more effective ways to approach this question.
You may now choose sides.
TrackBack URL for this entry:
Listed below are links to blogs that reference The Chairman Speaks: Bernanke vs. Krugman On The Minimum Wage:
- Signs of Improvement in Prime-Age Labor Force Participation
- Could Reduced Drilling Also Reduce GDP Growth?
- Are Shifts in Industry Composition Holding Back Wage Growth?
- Are Oil Prices "Passing Through"?
- Business as Usual?
- What's (Not) Up with Wage Growth?
- Are We Becoming a Part-Time Economy?
- Contrasting the Financing Needs of Different Types of Firms: Evidence From a New Small Business Survey
- Gauging Inflation Expectations with Surveys, Part 3: Do Firms Know What They Don’t Know?
- Gauging Inflation Expectations with Surveys, Part 2: The Question You Ask MattersA Lot
- March 2015
- February 2015
- January 2015
- December 2014
- November 2014
- October 2014
- September 2014
- August 2014
- July 2014
- June 2014
- Business Cycles
- Business Inflation Expectations
- Capital and Investment
- Capital Markets
- Data Releases
- Economic conditions
- Economic Growth and Development
- Exchange Rates and the Dollar
- Fed Funds Futures
- Federal Debt and Deficits
- Federal Reserve and Monetary Policy
- Financial System
- Fiscal Policy
- Health Care
- Inflation Expectations
- Interest Rates
- Labor Markets
- Latin America/South America
- Monetary Policy
- Money Markets
- Real Estate
- Saving, Capital, and Investment
- Small Business
- Social Security
- This, That, and the Other
- Trade Deficit