by Logan Albright, Ike Brannon
Cato Institute
July 30, 2014
Regulation
Despite warnings from the Congressional Budget Office that doing so will destroy up to 1 million jobs, the White House continues to advocate that Congress increase the federal minimum wage from $7.25 an hour to $10.10. Examining the proposal on a state-by-state basis reveals that most of the job loss would happen in the lower Midwest and South, where wages and costs of living tend to be lower. The federal minimum wage is a particularly blunt instrument to use to deal with the very real problem of stagnating incomes among the working class. Kentucky and New York may be part of the same country, but they are miles apart when it comes to their relative wages and costs of living. Having a wide range of minimum wages beats uniformity hands-down.



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