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Minimum wage should rise, say economists

About 650 economists, including Nobel Prize winners, endorse a raise for the poorest.

By SCOTT BARANCIK
Published October 12, 2006

Five Nobel Prize-winning economists say it's time to raise the federal minimum wage, the pro-labor Economic Policy Institute said Wednesday. About 650 economists in all signed a letter endorsing a two-year bump to $7.25 from the current $5.15.

Not everyone is sold on the star power of Nobel laureates and other economists. "I would doubt if they carry much weight," said Richard Coe, an associate professor of economics at New College of Florida and one of 10 signatories from the state. "We've pretty much heard the same arguments for 20 years."

Alison Preszler, a spokeswoman for the pro-business Employment Policies Institute, almost yawned when told about the letter. "The 500 economists thing? They dusted that off again, eh?" she said. Her boss, managing director John Doyle, called it a "political ploy" aimed at the November elections. Still, the group has its own Nobel endorsements lined up, just in case.

Florida State University professor David MacPherson, who has authored Employment Policies Institute reports warning that minimum-wage hikes will cause substantial layoffs, did not and would not sign on to the Nobel letter. "It's one of those feel-good laws," he said.

Scott Barancik can be reached at barancik@sptimes.com or 727 893-8751.

[Last modified October 11, 2006, 23:39:03]