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March 3, 2014
COMMENTARY – by Michael J. Hicks, Ph.D.
An increase in minimum wage will lead to a decrease in jobs.
Last week the Congressional Budget Office released a study on a proposed minimum wage hike. Their conclusion was that raising the minimum wage by 39 percent from $7.25 to $10.10 would reduce employment by roughly 500,000 jobs. I appreciated this study, not least of all because in 2010 I published a study that concluded that the 41 percent increase in the minimum wage after 2007 cost the U.S. economy some 550,000 jobs.
Read the full text: The Minimum Wage Debate Is a Complex One
Last week's commentary: Assortive Making, Social Mobility and Income Inequality
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DID YOU KNOW? – by Dagney Faulk, Ph.D.
The real GDP estimates for the fourth quarter of 2013 were released last week. Real Gross Domestic Product (GDP) is the dollar value (adjusted for inflation) of all final goods and services produced in the U.S. It is a measure of output and the most commonly used measure of economic growth. There are four components of GDP: Private consumption expenditures, gross private domestic investment (business expenditures), government spending, and net exports (exports-imports).
GDP for the fourth quarter of 2013 was $15.96 trillion (seasonally adjusted), representing a growth rate of 2.4 percent (which was lower than the previous estimate). GDP surpassed the prerecession level during the second quarter of 2011. Relatively small gains in personal consumption, exports, and investment were offset by lower government spending, particularly federal government spending.
ECONOMIC INDICATORS – View all economic indicators (CBER Data Center).
MONDAY: Personal Income - country
FRIDAY: Motor Vehicle Retail Sales - country
FRIDAY: Unemployment Rate - country
FRIDAY: Employment, Hours, and Earnings by Sector - country
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