filed under Economics
Another day, another lie
12:59AM ON
04/27/2008
BY
Dave Segal
On the Projo editorial page.
States raised their minimum-wage rates about 19 percent on average from 2005 to 2008. In Rhode Island, however, the minimum wage went up a stunning 44 percent in that time period. Michigan increased its minimum wage almost 40 percent, and Ohio increased it 36 percent.
The 2005 RI minimum wage was $6.75. Now it’s $7.40. That’s a less than 10% increase. Or, in real dollars, no increase at all. How does such an explicit lie make it to print?
Far from helping the poor, these regulations are hurting those most in need of work. The national unemployment rate is 4.8 percent, but Rhode Island’s is 5.7 percent. Michigan and Ohio are doing even worse, hitting a 7.1 and 5.5 percent unemployment rate respectively this year.
In Mass the min wage is $8.00. In CT it’s $7.65. And these states have union densities similar to our own. The Mass unemployment rate is 4.4%. (CT’s is lower than RI’s, but a little higher than the national average.)
If you’re a bullshitter, it’s really easy to cherry-pick stats and states to make a case: Hawaii has a 3.1% unemployment rate, with a $7.25 min wage and the second-highest union density, at 25%. New York’s number one in union density, with average unemployment.
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