REPORT: $15 Minimum Wage Doesn’t Reduce Dependence On Government Welfare
Progressives herald a hike in the minimum wage as a way to get people off welfare, but it turns out they’re wrong again.
Minimum wage increases do not reduce reliance on government assistance programs, according to a report from the Employment Policies Institute.
Some argue that by raising the minimum wage, individuals would participate less in social safety net programs, and in turn this would save taxpayers money. The institute has not found much proof to support this claim.
“Federal and state minimum wage increases have had no measurable impact on the use by working-age adults of SNAP, Medicaid, Temporary Assistance for Needy Families, and the Women, Infants, and Children program,” states the report. “In some specifications, they find evidence of an increase in the use of free and reduced-price lunches and housing subsidies following minimum wage increases.”
The report finds that raising the minimum wage to $15, a measure that Sen. Bernie Sanders (I., Vt.) has supported, is a “blunt tool” in helping many get off of government assistance. Only 12 percent of those who would be affected by this new wage are recipients of the food stamp program and 10 percent benefit from Medicaid.
More studies will be done but liberals still won’t understand this.
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