Does the Minimum Wage Prevent Poverty?

Does the Minimum Wage Prevent Poverty?


We don’t like to see anyone living in poverty,
but making employers pay their employees a higher minimum wage of more than $10 an hour
really won’t solve the poverty problem. That’s because most people who earn minimum
wage don’t live in poverty in the first place. They actually live in homes where at least
one or two other people work… like a teenager whose parents have jobs. Or they are retirees who have savings accounts
and Social Security as their main income. In fact, only about 1 in 10 minimum wage workers
lives in a household that the government would consider poor. Does it make sense to try to solve the right
problem the wrong way? A well informed public is the best defense
against bad public policy.