The Economic Perspective: “Alternatives to Raising the Minimum Wage”

Mary: This is Mary Walden with economist MW welcoming you to the economic
perspective. Today’s program looks at alternatives to raising the minimum wage. Mike,
there is a big debate about whether the minimum wage should be increased from $7.25 an
hour to $15 an hour. For those who oppose it, are there any alternatives?
Mike: Summary Answer
a. Yes, one is to expand the Earned Income Tax Credit
b. This reduces federal income taxes for low wage workers
c. Interesting, if reduce taxes to zero, will get addition cash
d. Another option is a wage subsidy
e. Government adds to wage to get up to a certain level
f. Third is to roll all poverty spending into one program, helping people pay
for things like food, housing, transportation, and medical care
g. I’m MW
Mary: And I’m Mary Walden for the Economic Perspective, an NC State Extension
program from the Department of Agricultural and Resource Economics.