Can `Draghi Economics’ Work?

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May 6 (Bloomberg) -- Former Council of Economic Advisers Chairman Alan Krueger discusses monetary policy on Bloomberg Television’s “Bloomberg Surveillance.” (Source: Bloomberg)

Morning.

Let me start with professor krueger.

Is a $15 minimum wage in seattle not something that can be handled?

I think it was unprecedented.

They had a nonpartisan group put together the came up with a $15 an hour recommendation over a. of years.

That could set a model.

I think would be better to have a more reasonable national minimum wage and i would prevent some these local movements.

In seattle, they can handle relatively high minimum wages as long as it does not go up too quickly.

What we have seen the last couple of days, state-by-state minimum wages.

If you look at a chart, we have come back from the abyss of 2005. we are still nowhere near some of those federal minimum wages of the 80's and 90's. nigel travis, you are in the trenches.

Are you going to get crushed in seattle?

I think it is out of a normal range for minimum wage.

You mentioned a state-by-state, i think you also mentioned what the local economy can stand up.

We support a state-by-state minimum wage.

$15 is higher than the california.

Does that automatically lead to other wages coming up as well?

There is an element of that.

The real discussion is about jobs.

There is an element with businesses, small businesses, are you going to stop people from expanding?

Are you going to stop businesses?

A company like ours is going to grade 8000 jobs this year.

We support minimum wage.

We support them wage state-by-state.

We don't support the federal idea.

You have to pay the correct wage on a state-by-state basis.

The correct question is getting people into the workforce.

Youth unemployment is never discussed.

If you take the age range between 16 and 29, it is 15.8%. that is nearly as high as europe.

What this industry does is creates jobs for people coming into the workforce and gives them the experience.

70% of people who come into our industry are promoted within one year.

You wrote the paper on studying the impact of higher wages for fast food workers in new jersey.

You found that it did not destroy jobs.

Can you respond to nigel on this quest to mark --? i don't think the federal -- i think the federal government should set a floor.

What we found them but others have found is that when the minimum wage goes up, the franchisees and fast food restaurants and other low-wage employers can adjust by improving productivity, seeing turnover declined, reducing food costs.

They have very high turnover.

Most of the workers are not teenagers who were for two before.

They tend to be workers supporting a family and getting a lot of government support.

There is a lot of assistance for the government to provide.

The minimum wage is well below where it was when ronald reagan was president.

People don't have enough money to go shopping.

They see more customers with the minimum wage goes up.

That is good for business and the economy overall.

I wanted you to pick up on that point.

Many meet workers who make minimum wage are not teenagers, they are supporting families.

I don't think there are too many disagreements between us.

It is undoubtedly true that there are older workers.

The point i was making was we forget youth unemployment.

The point you are making is true.

We have older workers.

Remember that number, this is a great way for people getting skills and the national restaurant association has a campaign about getting people into our industry.

It gives you skills about customer service in dealing with people.

At the same time it, they get higher wages if they progress.

Retail in general is a great way to get to higher levels.

We have a shining light here during.

This is what gets us going.

We have to invest money into any kind of job.

What we found in the 1980's a missile that drop in the value of the minimum wage.

Anglin has a minimum wage well above ours.

They have seen no reduction of employment.

Employers can handle a minimum wage that is higher.

I think it would be good for the economy overall.

What is the right minimum wage for dunkin' donuts?

I think it's on a state-by-state aces.

California is going to nine dollars in july.

New york is going to $8.75. most pay above the minimum wage.

If you took those two states and some have lower wages, i would say eight dollars is probably a good number.

You don't agree with that.

I can see alan krueger falling off his chair.

The president proposed a nine dollars an hour and there was a lot of support for that.

I think it does cost businesses some profit.

I think they can afford it.

They are making record profits.

We are quite clear.

$10.10 is too high.

I think.

We're going to go to break year with a fist fight over the minimum wage.

Every month there has to be a donut.

We'll be right back.

This text has been automatically generated. It may not be 100% accurate.

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