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View Diary: Marco Rubio says he opposes minimum wage laws. What about the other GOP 2016 hopefuls? (54 comments)

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  •  Minimum wage and GDP (0+ / 0-)

    A couple of years ago, a lunchtime conversation turned to the economic effects of raising the minimum wage. One Bush supporter at the table told the rest of us that raising the minimum wage would depress GDP growth, claiming it wasn't a matter of opinion but as straightforward as the laws of physics.  

    I'm not a physicist, nor an economist (as if either of these would really help answering the question), but I know how to look at data, so I went there.  It's quite interesting. I looked at GDP growth the year before and the year after every raise in the minimum wage for the last 35 years or so, as well as growth in the year the raise happened.  

    Well, guess what? Raising the minimum wage leads to increases in GDP growth. This is consistent with the "consumer spending is the engine" view, inconsistent with the "job creators will cut back on hiring view," and can be spun in many directions.  

    Facts are funny things. My co-worker's response was, "I don't believe it."  

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