Fox News pushed myths about the economic impact of raising the minimum wage as New Jersey voters decide whether to increase it.
A ballot measure in the November 5 election would, if it passes, increase New Jersey's minimum wage from $7.25 an hour to $8.25 and change the state constitution to tie future increases to inflation. According to The Washington Post, public opinion polls show an overwhelming majority of voters support the measure.
But the morning of the election, Fox & Friends misled New Jersey residents about the increase in wages. Fox News legal analyst Andrew Napolitano falsely claimed the measure would reduce employment in the state and increase poverty:
NAPOLITANO: The minimum wage is something that the government uses to force employers to pay low-end employees more than they're worth, and it actually results in putting people out of work. When the minimum wage goes up and employers are forced to pay entry-level people more than they're worth, they'll hire few[er] of them. So the president says nobody who works full-time should be below the poverty line, he's actually going to put more full-time people into, below the poverty line, because he's going to kick them out of work. And if your and my fellow voters in New Jersey pass this, and it looks like they will, that's going to result in more unemployment.
Napolitano ended by confirming he was voting against the measure. He also called it "very dangerous" to enshrine automatic minimum wage increases in the constitution, but as the Post reported, four other states have already done this.
Numerous studies have shown that minimum wage increases have little to no effect on jobs, and may even increase hiring. In fact, after New Jersey enacted a minimum wage increase in 1990, economists David Carr and Alan Kreuger surveyed restaurants in south Jersey and Pennsylvania and found the number of jobs grew. Research also shows minimum wage increases improve the economic performance of small businesses, and the Economic Policy Institute predicts that nationwide minimum wage increases could grow the economy.
In July, Media Matters found that the vast majority of Fox News segments on the minimum wage included the myth that increasing the minimum wage would cause job losses.