The CEA Fact Checkers Miss One

In his speech yesterday, President Obama said,

Now, nosotros all know the arguments that bring been used against a higher minimum wage. Some tell it genuinely hurts low-wage workers -- businesses volition live on less probable to hire them. But there’s no company bear witness that a higher minimum wage costs jobs.

From my perspective, the final judgement is only incorrect.  There is a lot of work past times reputable economists that finds adverse job effects of a higher minimum wage.  In a poll of top economists, every bit many tell they believe that the adverse job consequence is noticeable every bit those that tell the opposite.

The president could bring said at that spot is no completely decisive evidence.  Or, more accurately, he could bring said at that spot is mixed evidence. But maxim at that spot is no company evidence is misleading.
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Two Random Things That Made Me Smile

On New England frugality:

Bostonians however enjoin the storey of the respectable social club matron who was crossing the Common 1 twenty-four hours together with ran into an former college chum she hadn’t seen for years. The matron was dismayed to encounter that her friend was apparently engaged inwards the world’s oldest profession. “My dear,” she said, “whatever has happened to you?” “Well,” said her friend, “it was either this or dip into capital.”

On a child's persuasion of marriage:

How tin post away a stranger enjoin if 2 people are married?

You powerfulness bring to guess, based on whether they appear to endure yelling at the same kids.  - Derrick, historic menses 8

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The Progressivity of the Current Tax Code

Source: CBO.  Click on graphic to enlarge.

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A Fun Quiz

For the vacation political party for ec x department leaders, caput department leader David Johnson prepared the next "quiz," which he has allowed me to portion amongst weblog readers.  The quiz is opened upwardly book, opened upwardly internet. The winning squad got eighteen out of 20. Try your manus at it.  I volition postal service answers inward a few days.

Good luck!

Ec x -- End of Semester "Quiz"

[Hint:  Each Answer Has a Certain Ec10 "Flavor"]

 
1.         For 35 years, Bob Barker welcomed those who had "come on down" to this TV game show.

2.         New Ec10 lather opera starring Luke, Laura, as well as Francis Edgeworth.

3.         First the U.S. auto manufacturer to offering spot belts equally an option.

4.         Neurosis shared yesteryear double-decker rides as well as margarine .

5.         One-word term for one's commence apartment.

6.         The lawsuit of Atlas's misplacing his celestial sphere.

7.         "Careful!  The Bayeux Tapestry's wall mounts are loose!"

8.         Can nosotros purpose this same phrase for the sensitivity of either crucifix or rosary bead need to the cost of the crucifix?

9.         Metropolis governed yesteryear U-boat captains.

10.       Pushpins adorned amongst benzene rings.

11.       My cousin Vinny is a sports reporter as well as is ever bespeak coaches at press  conferences, "May-a I-a ________________ you-a on-a that-a?"

12.       Tony Award-winning Miss Saigon actor's hardwood entryway.

13.       Flo's employer.

14.       Red Sox / Yankees:  the almost heated i inward professional person sports.

15.       What nosotros mightiness bring when Pamela Ewing's rep is out of control. 

 
16.       What we've made upon deciding which poetry form to purpose inward our Super Bowl commercial.

17.       New Parker Brothers board game fashioned later Laurel & Hardy or Burns & Allen or Rodgers & Hammerstein or Marx & Engels or Masters & Johnson......

 

18.       If an MP were to endure a pump laid on during David Cameron's inquiry time,  it would locomote a _____________________________ .

 19.       The best comedians/comediennes accomplish the highest indicate on the  ________________________.

 20.       Past, Present, or Future Perfect equivalent of the cost of our bath basin .

SCORE:   _______ ( "correct" answers are worth 1 indicate each ! )

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EITC is meliorate than the Minimum Wage

From David Neumark:

Suggesting that federal policy addressing low-wage move in addition to low-income families has somehow failed because the minimum wage has non kept footstep alongside inflation ignores the fact that nosotros accept moved away from a focus on the minimum wage — a policy alongside many flaws — in addition to toward the earned-income taxation credit.  We shouldn’t last bespeak only how much the existent minimum wage has changed, but rather how much the combined income flooring generated past times the 2 policies has changed.

To furnish an example, the blueish draw of piece of job inwards the figure below shows the reward received past times a unmarried adult worker earning the minimum wage in addition to working amount fourth dimension throughout the year. This tin last interpreted equally the income flooring established past times the minimum wage. The ruby-red draw of piece of job shows the degree of menage unit of measurement income when the earned-income taxation credit for a menage unit of measurement alongside 2 children is added (all inwards 2012 dollars). The lower draw of piece of job illustrates the income consequences of the existent spend upwards inwards the minimum wage. But the upper draw of piece of job shows that, because of the precipitous growth inwards the generosity of the earned-income taxation credit, the combined effect of the 2 policies is that the existent income of this menage unit of measurement is equally high or higher than it was inwards past times decades — when the existent minimum wage was relatively high — in addition to much higher than it was inwards nearly of the intervening years.

 

Nonetheless, at that topographic point are of import differences betwixt the earned-income taxation credit in addition to the minimum wage. The telephone commutation divergence is that the earned-income taxation credit aims benefits at low-income families alongside children, rather than only low-wage workers. This is inwards large purpose its virtue, in addition to it makes a lot to a greater extent than feel than the minimum wage’s focus on low-wage workers. Do nosotros actually attention if a low-wage teenager inwards a middle-class menage unit of measurement makes an extra dollar an hour?  Economists of all persuasions inwards the minimum-wage fence concur that mandated wage floors practise a bad chore of directing benefits to low-income families.  This is confirmed inwards recent interrogation past times my graduate pupil Sam Lundstrom, calculating who would last affected past times increasing the electrical flow federal minimum to $8.25 from $7.25.  He finds that exclusively 21.3 per centum of the affected workers would last inwards pitiable families, spell 30.9 per centum would last inwards families alongside incomes to a greater extent than than 3 times the poverty line.

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A Harvard Victory

Congratulations to the Harvard Fed Challenge Team, which recently won the national title.  Here is a moving-picture exhibit of the team, together alongside a soon-to-be-unemployed Harvard alum.

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Answer Sheet

Here are the answers to the Fun Quiz I posted a few days ago:

1.         For 35 years, Bob Barker welcomed those who had "come on down" to this TV game show.

The Price is Right

2.         New Ec10 lather opera starring Luke, Laura, together with Francis Edgeworth.

General Equilibrium (or General Equilibrium Hospital)

3.         First the U.S. of A. machine manufacturer to offering topographic point belts equally an option.

Nash

4.         Neurosis shared yesteryear omnibus rides together with margarine .

Inferiority Complex

5.         One-word term for one's get-go apartment.

 

Efficiency

6.         The termination of Atlas's misplacing his celestial sphere.

Deadweight Loss

7.         "Careful!  The Bayeux Tapestry's wall mounts are loose!"

Mural Hazard

8.         Can nosotros purpose this same phrase for the sensitivity of either crucifix or rosary bead need to the cost of the crucifix?

 

Cross Price Elasticity of Demand

9.         Metropolis governed yesteryear U-boat captains.

 

Sub City

10.       Pushpins adorned alongside benzene rings.

Carbon Tacks

11.       My cousin Vinny is a sports reporter together with is ever bespeak coaches at press  conferences, "May-a I-a ________________ you-a on-a that-a?"

Quota

12.       Tony Award-winning Miss Saigon actor's hardwood entryway.

 

Price Floor

13.       Flo's employer.

Progressive

14.       Red Sox / Yankees:  the close heated 1 inwards professional person sports.

Rivalry

15.       What nosotros mightiness accept when Pamela Ewing's rep is out of control. 

A Principal-Agent Problem
 
16.       What we've made upon deciding which poetry form to purpose inwards our Super Bowl commercial.

Ad Verse Selection

17.       New Parker Brothers board game fashioned afterwards Laurel & Hardy or Burns & Allen or Rodgers & Hammerstein or Marx & Engels or Masters & Johnson......

 

Duopoly

 

18.       If an MP were to endure a oculus assault during David Cameron's enquiry time,  it would live a _____________________________ .

Tragedy of the Commons

19.       The best comedians/comediennes accomplish the highest bespeak on the  ________________________.

Laugher Curve

20.       Past, Present, or Future Perfect equivalent of the cost of our bath basin.

 

Sunk Cost

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