If anything, the CBO’s report convinces me that a 40% increase in the minimum wage would be problematic. The report rather clearly states that a 24% increase would destroy significantly fewer jobs than a 40% increase would. And a close reading of the report suggests that much of the benefit of a minimum wage increase would be realized by white teenagers living at home with Mommie and Daddy in reasonably prosperous circumstances while the pain would be born by black teenagers. I don’t find that an acceptable outcome.
I pointed out some of the shortcomings in the CBO report yesterday. There’s one thing that puzzles me. The 500,000 jobs lost figure for a 40% increase in the minimum wage seems to be a brute force, split-the-difference figure between zero jobs lost and a million jobs lost. Does the CBO really believe that all of the probabilities from zero to a million are equally likely?
Alexis Simendinger read it the same way I do. If there’s an increase in the minimum wage, it might well be to $9.00 rather than to $10.10.