Fox News pushed a number of discredited myths to attack renewed calls for raising the minimum wage, ignoring research and prevailing opinions' of economists.
On November 7, President Obama expressed support for the Fair Minimum Wage Act, which seeks to raise the federal minimum wage to $10.10 an hour.
Reacting to the renewed call to raise the minimum wage on the November 8 edition of Fox News' Happening Now, reporter Doug McKelway dedicated a segment to discussing its potential economic effects. McKelway expressed doubt over the economic merits of raising the minimum wage and claimed that it would force companies to "cut back by getting rid of workers or increasing the price of goods they make or sell."
Instead of informing viewers with research about the effects of raising the minimum wage, McKelway's report largely hinged upon an interview with construction contractor and conservative activist Brett MacMahon and anecdotal evidence. Had McKelway attempted to give a fact-based report on the minimum wage, viewers would know that increasing it has been found to have a positive impact on job creation and economic growth.
According to the Center for Economic and Policy Research (CEPR), which recently examined research on the minimum wage since 2000, "[t]he weight of that evidence points to little or no employment response to modest increases in the minimum wage." Indeed, CEPR's findings back up previous studies, one of which found that hiring responses to minimum wage hikes are more likely to be positive than negative.
A minimum wage analysis published by the Economic Policy Institute (EPI) revealed the broader impact of gradually raising the federal minimum wage above $10 per hour by July 1, 2015. According to EPI, increasing the minimum wage to $10.10 per hour would result in over $51 billion in additional wages paid to roughly 30 million American workers. The wage increase would stimulate nearly $33 billion of increased GDP growth while creating as many as 140,000 new jobs.
According to EPI tabulations, increasing the minimum wage would have its largest impact on workers at the lower end of the income bracket, but the positive side effects would still be felt by hundreds of thousands of households with income in excess of $150,000 annually.
McKelway continued pushing his inaccurate minimum wage reporting later on Fox News' America's News HQ. The segment focused heavily on the alleged negative impact an increased minimum wage would have on young and teen workers. However, according to the aforementioned EPI study, a gradual wage increase similar to that supported by President Obama would largely affect workers aged 20 years or older, with teenage workers only representing a little more than 11 percent of those receiving increased wages.
Increasing the federal minimum wage to $10 per hour is supported by the National Employment Law Project (NELP), which claims such a wage increase would positively impact "nearly one in every five workers in the country." Furthermore, a February 2013 survey of economists conducted by the University of Chicago's Booth School of Business found wide support for President Obama's previous call for raising the minimum wage to $9.00.