NC Budget and Tax Center

Low wages are a choice

In a piece released on Monday, Paul Krugman reflected on the decision by Walmart to raise the minimum wage of its workers. He notes that this will likely lead to many more companies following suit. Indeed TJ Maxx-Marshalls has already signaled that it will do the same for its workers this year.

More than moving business to act, these private sector initiatives signal that the economic arguments—reduced turnover, higher productivity, improved morale– for raising the minimum wage standard through public policy make good sense. As Krugman points out:

What this means, in turn, is that engineering a significant pay raise for tens of millions of Americans would almost surely be much easier than conventional wisdom suggests. Raise minimum wages by a substantial amount; make it easier for workers to organize, increasing their bargaining power; direct monetary and fiscal policy toward full employment, as opposed to keeping the economy depressed out of fear that we’ll suddenly turn into Weimar Germany. It’s not a hard list to implement — and if we did these things we could make major strides back toward the kind of society most of us want to live in.

The bottom line is that the choice to keep the minimum wage standard low as a matter of policy no longer makes sense for workers or businesses. It’s time for policymakers to follow these leaders and raise the minimum wage.

One Comment


  1. LayintheSmakDown

    March 4, 2015 at 4:04 pm

    This is one of the best posts I have ever seen on the Pulse. This shows that the private sector is much more suited to determine a minimum wage than the government. See, when a company cannot hire an adequate employee at $7.25 they will likely have to go higher to get someone with experience or education that matches their need. The minimum wage laws are obsolete in the modern day.

Check Also

U.S. Senate COVID-19 relief proposal falls far short of need across N.C.

It is foolhardy to look at the current ...

Join Our Team

NC Policy Watch is hiring two new journalists to join our award-winning team. Click here for more information.  

Top Stories from NCPW

  • News
  • Commentary

As part of our ongoing effort to inform North Carolinians about the state judiciary, Policy Watch is [...]

Even with an increase in absentee voting, election directors expect a large in-person turnout. Since [...]

Irwin Detention Facility has history of physical and verbal abuse Top U.S. House Democrats are inves [...]

As part of our ongoing effort to inform North Carolinians about the state judiciary, Policy Watch is [...]

Talk from Republican senators about "rules" and "precedent" is nothing but a smo [...]

Supreme Court hypocrisy, effort to infiltrate progressive NC groups ought to be the last straws It s [...]

For many parents and caregivers, seeing their child struggle through virtual learning can be both fr [...]

Click here for the original story. The post The far-right go fishin’ appeared first on NC Policy Wat [...]