Greenspan on the Minimum Wage
Alan Greenspan will, I predict, decline as well--a forecast I make based on this old article from the files.
Greenspan's view is consistent with recent research by David Neumark. Obviously, not all economists are convinced.
Greenspan warns higher minimum wage could raise unemployment
The Associated Press, February 24, 1999
Raising the minimum wage could deny some teenagers their chance at entry-level jobs, Federal Reserve Chairman Alan Greenspan said Wednesday.
Responding to questions from House Banking Committee members while delivering the Fed's semiannual report to Congress, Greenspan said increasing the wage probably would push inflation higher. But he said his main concern was "individuals who become unemployed because of the minimum wage."
"Being unemployed when you're a teenager... is very detrimental to... learning by training and becoming a productive member of the work force," he said.
I wonder if Ben Bernanke will be as forthright on this topic as Greenspan was. My guess is that Ben's views on the minimum wage are not very different from Greenspan's, but that Ben will decide that he hasn't accumulated enough political capital to stick his neck out on such a politically charged issue.