Nathan Newman writes about Dean's $7 minimum wage proposal and similar proposals from other candidates without a specific number. I don't doubt this idea has traction for the campaign, but wouldn't it make more sense to increase the EITC and change the payroll tax schedule to begin at a higher level? Getting rid of the payroll tax for minimum wage employees should increase their wages about 12%, and increasing the EITC could get you to any level of income you want beyond that. The thing about a higher minimum wage is it means some low wage workers will get fired, because there will be less money available for labor costs. This is not something we want to deal with right now.
I was excited to see that Gephardt supports an international minimum wage. Yes, it would have some of the same consequences in other countries that Dean's proposal would have here, but the difference is that many other countries don't have the kind of institutions in place to collect income taxes, much less distribute a tax credit - so there aren't a lot of other policy options available. Also, conditions for the working poor are much worse in places like India than they are here! Scaling the wage according to the circumstances of a particular country would allow local workers to benefit without significant trade disruption, and the whole thing could be accompanied by minimum international labor standards.
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