Critique of an Article: Wage Gains for Low Earners Have Helped Sustain America’s Economic Expansion.
The nation’s gross domestic product has been growing for the last 121 consecutive months, the metric used to measure periods of sustained economic growth. That surpasses the 120-month expansion from 1991 to 2001. The most recent expansion started in 2009, after the global financial crisis in 2008. The Great Recession was the worst U.S. economic downturn since the Great Depression in the 1920s and ’30s.
None of this happens quickly, however, giving firms monopsony power over their workforces. Monopsony power hinders wage growth for workers, which, in turn, slows consumer demand and reduces overall savings in the U.S. economy.
(David Cooper, 2019)
It would also boost the overall economy by generating increased consumer demand.
David Cooper, Raising the Federal Minimum Wage to $15 by 2024 Would Lift Pay for Nearly 40 Million American Workers, Economic Policy Institute, February 2019.
Congressional Budget Office, An Update to the Economic Outlook: 2018 to 2028, “10-Year Economic Projections”, August 2018.
Sylvia Allegretto and David Cooper, Twenty-Three Years and Still Waiting for Change: Why It’s Time to Give Tipped Workers the Regular Minimum Wage, Economic Policy Institute, July 2014.
Paul J. Wolfson and Dale T. Belman,“15 Years of Research on U.S. Employment and the Minimum Wage,” Tuck School of Business Working Paper no. 2705499, December 2016.
Isaiah Andrews and Maximilian Kasy, “Identification of and Correction for Publication Bias,” Mimeograph, October 10, 2018.