Christina Romer Quotes
If every other store in town is paying workers $9 an hour, one offering $8 will find it hard to hire anyone - perhaps not when unemployment is high, but certainly in normal times. Robust competition is a powerful force helping to ensure that workers are paid what they contribute to their employers' bottom lines.
Romer, Christina D. "The Business of the Minimum Wage." The New York Times, 2 Mar. 2013, p. BU4.
This is the classic conservative argument against raising the minimum wage. Historically, if the minimum wage was raised well after there has been a period of wage inflation, there has been little or no negative effect on the lowest paid workers. However, when the minimum wage has been raised during a period of wage stability, there is an effect of making some workers simply not worth the rate that they must be paid. However, even then, after a year or two, the negative effect begins to dissipate.
At the time, industrialists could not even conceive of the notion of negotiating over wages must less collective bargaining.
Ten cents a day was a very low wage—it was about the equivalent of a meal at a tavern at the time. Workers throughout the country were outraged and give him a derogatory nickname—see Quotation 643585.
Christina Duckworth Romer is the Class of 1957 Garff B. Wilson Professor of Economics at the University of California, Berkeley and a former chair of the Council of Economic Advisers in the Obama administration. She resigned from her role on the Council of Economic Advisers on September 3, 2010.