Many economists argue that increases in the minimum wage cost jobs, but that didn’t stop “Your $$$$$” hosts Ali Velshi and Christine Romans from defending such increases.
Velshi described Sen. Barack Obama’s support for raising the minimum wage as “more attractive” because of the recent job losses and asked a Republican strategist what Sen. John McCain would do to create jobs on Oct. 25.
Romans and Velshi were discussing politics and money with Leslie Sanchez, CNN contributor and Republican strategist; Democratic strategist Hilary Rosen, founder of Rock the Vote, political director of The Huffington Post and CNN contributor; and Eamon Javers, writer for Politico.com.
But both CNN co-hosts jumped on Sanchez when she implied that raising the minimum wage hurts businesses and especially small businesses.
Velshi interrupted Sanchez to say “our minimum wage is, it’s insulting in this country. I mean, that’s a bit of a problem right?” Romans spoke over Velshi saying to Sanchez, “I’m going to challenge you on this.”
“Many studies have been done on this. When you study it, the states that raise the minimum wage have higher job growth than the states that don’t. Now, that might be because they're already in a better position but it’s not a 1, 2 economically that you raise the minimum wage and it kills jobs," Romans said.
Romans’ statement ignored studies from The Heritage Foundation and the Employment Policies Institute (EPI) among others.
EPI analysis reported by Seacoastonline.com, a subsidiary Web site of Ottaway Newspapers, found that since the 2007 federal minimum wage increase 238,000 teen jobs have disappeared.
The Heritage Foundation has compiled a list of studies that concluded that one effect of raising the minimum wage is reduced employment. Heritage research also found that more than half of minimum wage earners are under 25 years of age.
Velshi has historically cheered minimum wage increases, saying on July 24, 2007 the increase was “unmitigated good news.” On Jan. 2, 2007 he said the $5.15 minimum wage was “simply not fair.”
