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Fund research into wages subsidies, where some or all of the minimum wage is covered by state and federal dollars.

Created by M.R. on October 01, 2011

Many people consider the minimum wage necessary for entry-level workers to survive, while others claim it prices many of those same entry-level workers out of a job altogether.

It may be possible to resolve the differences between these two camps by funding some or all of the federal minimum wage with state and federal dollars. For example, with our current federal minimum wage, if the government paid $1 per hour, the employer would only need to provide $6.25 per hour. This wage subsidy could be limited to American citizens, and adjusted so there is essentially full employment.

There were several experiments in the 60's and 70's on the negative income tax, but none covering an actual wage subsidy, which would almost certainly encourage more work. We should fund the research.

Economy & Jobs
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