Neumark makes an entirely valid point though:
Some proponents defend a higher wage on other grounds, such as fairness, or compensating for the low bargaining power of low-skill workers. But let’s not pretend that a higher minimum wage doesn’t come with costs, and let’s not ignore that some of the low-skill workers the policy is intended to help will bear some of these costs.
Which is where Jared Bernstein does agree. He backs, along with the EPI, Dube’s idea of a $12 minimum. And he’s honest enough to say that at that rate of course some people will lose their jobs. But he thinks that’s worth it, for the higher incomes that those who retain theirs will have. That’s a moral calculus that you can accept if you wish: I don’t as I think the damage done to those excluded from employment is too large.
However, do note what that calculus is: people will indeed lose their jobs but it will be worth it. This is very different from that phantasmal world some inhabit where demand curves don’t slope downwards, where higher prices do not lead people to purchasing less.
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