The jobs report for December came out at 8:30. It was almost exactly what was expected with regard to job creation and the unemployment rate. On CBS News, they also pointed out that there is just a shade over a 3% wage increase year over year and that the increases are larger for lower and middle income workers than for high income workers. That's true, and it's in the report. But CBS couldn't stop there; the reporter had to add a little twist to try to take credit for the good economy and wage increases from President Trump and give it to states that raised the minimum wage. Jill Schlesinger, the CBS reporter, announced with no basis that the higher increase for lower and middle income wages was due to states that raised the minimum wage. Today's report has no data that would indicate her statement is true. Indeed, there is nothing in the report that one could use to figure out the cause of the higher wages.
There is, however, other data that is relevant. According to the Bureau of Labor Statistics, the state with the biggest wage increase in the last twelve months is Nevada. Nevada has a minimum wage, but it didn't change from 2010 until last week. In other words, the high wage growth in the state where wages are rising the fastest had nothing to do with minimum wage increases. We could go to other states as well. In South Carolina, wages grew at much higher than the national rate over the last year (again according to the Bureau of Labor Statistics.) South Carolina doesn't have a minimum wage. In North Carolina, there was also higher than average wage growth. That state uses the federal minimum wage rate and it hasn't raised it in many years. In Washington, the opposite is true. That state has a very high minimum wage, and it also saw large average wage growth. Each state is different. There are also states that raised the minimum wage but saw no increase in average wages.
The point here is that there is no evidence that the rate of wage increases has anything to do with state minimum wage laws. Indeed, most evidence says that the cause is the overall economy, not actions by the states. CBS News must know that. So what's the point of putting out the Fake News the way CBS did. Does it so distress them that President Trump might get credit that they have to lie? It certainly appears so.
UPDATE: After this was posted, I realized that I had omitted a point. Here it is: In 2019, the rise in the minimum wage in states across America happened either on January 1 or July 1. Three quarters of the states with rising minimum wages had those take effect on the first of the year. If the rise in wages for low and middle income Americans were due to the state minimum wages, then that increase would have been noted for January and July in particular. That is unsupported by the data. The rise in wages is due to economic growth not higher minimum wages.
There is, however, other data that is relevant. According to the Bureau of Labor Statistics, the state with the biggest wage increase in the last twelve months is Nevada. Nevada has a minimum wage, but it didn't change from 2010 until last week. In other words, the high wage growth in the state where wages are rising the fastest had nothing to do with minimum wage increases. We could go to other states as well. In South Carolina, wages grew at much higher than the national rate over the last year (again according to the Bureau of Labor Statistics.) South Carolina doesn't have a minimum wage. In North Carolina, there was also higher than average wage growth. That state uses the federal minimum wage rate and it hasn't raised it in many years. In Washington, the opposite is true. That state has a very high minimum wage, and it also saw large average wage growth. Each state is different. There are also states that raised the minimum wage but saw no increase in average wages.
The point here is that there is no evidence that the rate of wage increases has anything to do with state minimum wage laws. Indeed, most evidence says that the cause is the overall economy, not actions by the states. CBS News must know that. So what's the point of putting out the Fake News the way CBS did. Does it so distress them that President Trump might get credit that they have to lie? It certainly appears so.
UPDATE: After this was posted, I realized that I had omitted a point. Here it is: In 2019, the rise in the minimum wage in states across America happened either on January 1 or July 1. Three quarters of the states with rising minimum wages had those take effect on the first of the year. If the rise in wages for low and middle income Americans were due to the state minimum wages, then that increase would have been noted for January and July in particular. That is unsupported by the data. The rise in wages is due to economic growth not higher minimum wages.
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