Dear Editor:
On April 4, your Opinion proclaimed "Raising minimum wage errant approach to fighting poverty." I disagree with your opinion and timing for espousing this Chamber of Commerce dogma on the day in which Dr. Martin Luther King was being memorialized. When King was murdered he was in Memphis advocating for a "living wage" for sanitation workers and others as an important step in reducing poverty.
Ironically, the federal minimum wage reached its highest point in 1968 equaling $10.90 in 2015 dollars, more than $3 off the current minimum, and considered at that time not sufficient to provide a "living wage" (www.talenteconomy.io/2017/06/14/minimum-wage-impact-economy/).
The impact of raising the minimum wage on jobs and the broader economy is complicated and controversial. "(An increase in) minimum wages have both positive and negative effects on employment. Higher payroll costs will lead employers to automate some of their work and to raise prices, which reduces sales and therefore employment. On the other hand, quit rates fall when workers are better paid, reducing employee turnover costs faced by businesses, and better-paid workers are more productive since they value their employment opportunities more highly. Moreover, higher incomes generated by the increase in worker earnings create more purchasing power among households so boost demand, creating jobs.
"Empirical evidence to date clearly indicates small employment effects of past minimum wage increases, though there is no consensus whether the impact has been a small negative or a small positive effect.
"Recent research has shown that minimum wages are also effective in improving a broad range of other important outcomes, including for the children of minimum wage workers. These include the ability to acquire a used car, reducing the cost of consumer credit, reducing poverty, reducing employee turnover, improving worker productivity and reducing reliance on public safety net programs, such as food stamps. They also lead to improved infant health outcomes and improved adult mental health. Moreover, the households of minimum wage workers have a high propensity to spend any additional income, thus raising demand for goods and services and stimulating the local and national economy." (econofact.org/do-minimum-wages-really-kill-jobs)
In summary, more attention should be paid to the positive effects of an increase in the minimum wage on living standards, on health and educational outcomes, and on poverty reduction among low-wage households.