Washington Policy Watch

News and perspective on public policy issues affecting Washington's economy and quality of life, brought to you by the Economic Opportunity Institute.

May 29, 2008 • 9:36 am 0

Evidence for broad benefits of minimum wage laws

In the ongoing discussion over minimum wage laws, proponents say such policies provide a minimum safety net for workers and guarantee an honest day’s pay for an honest day’s work. Opponents often argue that a wage floor depresses demand for workers, creates higher unemployment, and even puts companies out of business.

There’s new evidence to suggests the opposition’s gloom and doom scenario doesn’t hold water. Economist’s View notes that a new paper published by the National Bureau of Economic Research:

…finds evidence the minimum wage transfers income from owners to workers (i.e. that it reduces profit and increases wages) but it does not change the probability of a firm going out of business, and it does not reduce employment.

Thus, this paper raises the possibility that an increase in the minimum wage reduces inequality without having much of an impact on aggregate activity or employment.

Filed under: minimum wage, work and family, , , ,

May 27, 2008 • 11:42 am 0

Beat the market: Invest in early childhood education

Editor Tracy Warner takes a look at the evidence on early childhood education and urges Washington to make further investments in our economic future:

Invest in early childhood education. Concentrate on children from families considered “at risk” due to poverty or other complicating factors. The rate of return will be true and measurable. Society will benefit socially and financially.

High-quality early learning and care (from birth to five years of age) has already been shown to improve health, lower crime, enhance education, and increase economic productivity.

Warner goes a step further, citing statistics from the Federal Reserve Bank of Minneapolis to make a case that the rate of return ($3-$17 per dollar invested) exceeds that of the stock market – even in good years:

This is practical advice. It is not phony economics in support of the latest do-good trend. There is an opportunity here to invest in education where there will be a measurable payoff. Washington state has moved ahead, increasing funding for preschool programs substantially, but there should be more, and more outlets for private contributions involvement.

In only a few years it could put money back in our pockets.

Filed under: early learning, education, state economy, , , , , ,

May 22, 2008 • 12:04 pm 0

Growing – and sharing – the economic pie

Today’s workers have a lot on their plates. Whether its the cost of food, gas and housing, keeping a steady job in a rapidly changing economy, finding long-term care for parents or daycare for the kids – and for many people, it’s all that and then some – it’s too much to take on alone.

The strain is showing on our families. More and more middle-class Americans say they aren’t better off than they were five years ago, reflecting economic pressures amid growing personal debt. People are are worried they will run out of money in retirement.

It’s not the first time we’ve faced big problems. Historically, Americans have drawn security from our willingness to pitch in together in the face of a crisis. We’ve created opportunity based on a moral commitment to ensuring each of us gets a fair start in life. And by doing so we’ve unleashed the power of prosperity, giving people the freedom to make of their lives what they will.

Every talking point and debate about taxes and government today is really about whether we can apply these same time-tested lessons to modern problems. For example:

Read the rest of this entry »

Filed under: education, minimum wage, retirement security, tax and budget, work and family, , , , , , , , , , , , ,

May 19, 2008 • 1:27 pm 0

Costs soar for seniors – how will the nation respond?

Sunday’s Chicago Tribune features a heartbreaking story about senior citizens playing bingo in the back of a grocery store, hoping for winnings like eggs, chicken, fruit, bread and fresh fish.

One of them is 84-year-old Ruth Graves, a retired waitress living on Social Security, shops on Wednesdays to save 10 percent on her purchases, and supplements her income by selling Avon products.

She, like more than 30 million other people over age 65, relies on Social Security as a primary source of income, averaging about $1,079 a month.

With gasoline prices around $4 a gallon, staples such as eggs, bread and milk rising rapidly and utility costs soaring, many seniors are caught in a financial crunch. With only Social Security, pensions or personal savings, experts say, many cannot keep up with inflation.

More and more seniors face shrinking nest eggs, the potential of foreclosure, and an increasing number of scams that threaten to deplete their savings.

Many of today’s seniors are old enough to remember surviving at least part of the Great Depression with their parents – many served their country, either at home or abroad in one form or another, during World War II.

This is a test of conscience for America. How will we respond to those who have given their best years to the nation – those in their twilight years, now faced with going hungry and getting sick in the midst of diminishing economic security?

Filed under: retirement security, , , , ,

All Posts: Budget and Taxes »
All Posts: Social Security »
All Posts: Family-wage Jobs »
All Posts: Government »
donate
All Posts: State Economy »
All Posts: Paid Sick Days »
All Posts: Paid Family Leave »
All Posts: Early Learning »

Twitter Updates

Follow

Get every new post delivered to your Inbox.

Join 426 other followers