minwage-drivethru_thumb-1.png
minwage-drivethru_thumb-1.png

Fraser Institute’s Calgary Herald op-ed used ‘B.S.’ data to attack raising the minimum wage

Another fire and miss from the right-wing, pro-big business Fraser Institute.

July 12, 2017

NEWPP.gif

 

Another fire and miss from the Fraser Institute.

In its latest Calgary Herald op-ed attacking the idea of raising the minimum wage, the right-wing, pro-big business think tank tries to convince readers that raising the minimum wage will hurt the “vulnerable.”

fraser-herald-oped.jpg

Never mind that millions of working Canadians can’t make ends meet or that six-in-ten Canadians earning less than $15 per hour is now over the age of 25 or that nearly half work for large companies – particularly big retail chains.

To make their case why millions of Canadians should continue to struggle, the Fraser Institute implores Canada’s “political leaders and labour activists” to please read an important study on the roll out of Seattle’s $15 minimum wage released recently by the University of Washington:

“In a nutshell, the study by University of Washington researchers found that Seattle’s minimum wage hikes have hurt the city’s most vulnerable workers … One can only hope that political leaders and labour activists in Canada will heed this new evidence – along with the mountain of evidence that already exists – and accept that a dramatically higher minimum wage is the wrong policy to help lesser skilled, low-wage workers.”

“Heed this new evidence”?

Sure, why don’t we all take a closer look at what others are saying about the “new evidence” the Fraser Institute just discovered?

headlines-uwash-minwage-study.jpg 

It turns out the study cited by the Fraser Institute – as well as Republican Senator Ted Cruz and far-right media outlets like Breitbart – has generated quite a few headlines noting its “glaring weaknesses” as well as “data limitations and methodological problems,” producing results “well outside the bounds of most published research.”

Fortune Magazine adds that “the minimum wage study is utter B.S.”

What exactly is wrong with the study?

For one thing, the study excludes “roughly 40% of the workforce.” 

That’s because the authors didn’t count businesses with multiple locations, meaning anyone earning minimum wage at large chains like McDonalds or Wal-Mart were not included in the analysis – the very same people who benefit most from a higher wage floor.

Researchers at the Economic Policy Institute explain: 

“By omitting all multi-location businesses, such as chains, in Seattle, the authors bias their results toward showing job loss if there has been a shift in employment from small, single-location establishments toward larger firms with multiple locations.”

What’s more, EPI’s researchers note the study’s “methodological problems” produced strange and implausible conclusions, like suggesting employers simultaneously cut minimum wage jobs at the same time as they increased the number of jobs paying $19/hour:

“These spurious results strongly suggest that the study’s methodology fails to account properly for the booming Seattle labor market during the period being studied – a labor market that has been shifting employment from lower-paid to higher-paid jobs.” 

With momentum towards a $15 an hour minimum wage growing across Canada, it’s worth keeping in mind that a mountain of recent studies have actually found the policy doesn’t only offer significant benefits for workers and society at large – it benefits businesses too.

As Fortune Magazine’s John Hoxie points out:  

“Employers see big benefits, too. Workers stay on the job longer, reducing turnover and training costs. They’re also significantly more productive, according to researchers studying wage increases in the United Kingdom. There are big benefits for broader society as well. Poverty goes down, as does reliance on public assistance programs –one of the few things both Democrats and Republicans can agree is a net positive. Also improved are infant health and adult mental health outcomes, including a significant reduction in depression.” 

What does the Fraser Institute have against that?

pressprogress-invest-button.png

Most Shared

Invest in our work

We break news and shine a light on stories Canada’s major media outlets miss. But we need your help to keep making an impact.

Subscribe to our Friday Newsletter

Too busy to follow the daily news? Get the inside scoop on the entire week’s news sent to your email inbox every Friday at noon.

Invest in our work

We break news and shine a light on stories Canada’s major media outlets miss. But we need your help to keep making an impact.

albrecht-scheer_thumb-1.png
albrecht-scheer_thumb-1.png

Conservative MP: rainbow pride flags at schools ‘diminish the dignity’ of the Maple Leaf flag

The same Conservative MP once predicted society would collapse if same-sex marriage was legalized.

July 10, 2017

NEWPP.gif

This is what we can expect from Andrew Scheer’s so-called “middle-of-the-road” Conservatives?

After police launched a hate crime investigation into the shredding of Pride flags at several Waterloo-area schools, local Conservative MP Harold Albrecht says he wants to see “corrective action” to appease those who are “deeply concerned about the flying of the rainbow flag.”

In a local news story covering the incidents, Albrecht issued a statement to the New Hamburg Independent suggesting the…