Focus on Families, Not on Wages

The Democratic Party has before it a choice between two economic policies: a big increase in the federal minimum wage, to $15 an hour from $7.25; and a per-child cash benefit of several thousand dollars a year. The decision will have major implications, for the future of both the party and the U.S. economy. The cash benefit is clearly the better option.

One problem with the minimum wage hike is that it is not clear how many people are harmed and how many low-skilled workers will lose their jobs, especially in poorer, lower-wage states such as Mississippi, where $15 is the median hourly wage. Advocates point to papers suggesting that minimum wage hikes do not boost unemployment, yet a recent survey suggests that the preponderance of the research shows job losses.