The EITC AND, not OR, the Minimum Wage

January 27th, 2014 at 9:46 am

Give this WaPo editorial a quick read.  It’s a nice description of a plan that raises low incomes by both raising the minimum wage and expanding the EITC.  I’ve heard some legitimate concerns about some of the proposed EITC tweaks in this plan, but it strikes me as a good starting point.  Note that both this piece and the one about the UK increase in the minimum (see earlier post) recognize that the higher minimum generates some public savings by reduced spending on safety net programs.  The proposed US plan applies some of these savings to the higher EITC.

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One comment in reply to "The EITC AND, not OR, the Minimum Wage"

  1. Robert Buttons says:

    I’m not an economist (no doubt my drivel belies this fact), but when I read the lay media, I get tow impressions:
    1. There is a certain urgency to raise the MW.
    2. There is record LOW inflation.

    Further, minimum wage hikes of 2007-2009 don’t appear to be associated with a decline in poverty rates, if anything there is a negative association.