Warren Buffett On EITC, the Minimum Wage and Immigration
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5448739443_bf5a3d3a34_o-e1425318931747[1]The AEI recently published an article where Warren Buffett supports increasing the Earned Income Tax Credit as an alternative to increasing the minimum wage. [Warren Buffett explains — simply and clearly — why a $15 minimum wage is bad for workers, By James  Pethokoukis, May 22, 2015] I would agree that in many cases, the EITC or its cousin the GAI are a better anti-poverty measure than the minimum wage.

However, a key point for immigration patriots: EITC is not at present limited to US citizens or even permanent residents.  Anyone with a valid social security number can claim the EITC.  Unless that is changed, expanded use of EITC will mean American citizens will be subsidizing their replacement.

The one size fits all national minimum wage  is tricky because it gives employers in high-immigration, high cost of living cities like New York, Los Angeles and Miami a de facto  exemption from providing the same living standards as employers in lower immigration communities.

The literature on minimum  wage increases suggests that   higher cost of living communities  can sustain minimum wage increases with few side effects.  I do not think it makes sense for VDARE.com readers to be worried much about the welfare of employers in high immigration cities.  Simply adjusting the current $7.25/hour minimum wage by local cost of living would be the equivalent to a national minimum wage of $10/hour(and would mean $19.30/hour in Manhattan).

In 2006, I suggested a  higher minimum wage for guest workers  than citizens. That would make even more sense when combined with an increased EITC for which only citizens were eligible.  Living standards for all workers would be maintained, but employers would foot the bill for guest  workers and employers would have at least some incentive to hire Americans first.


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