Fox Business Panel Mischaracterizes Sen. Elizabeth Warren's Minimum Wage Comments

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WarrenA trio of Fox Business commentators attacked Sen. Elizabeth Warren's (D-MA) advocacy for an increased federal minimum wage by wildly mischaracterizing comments she made during a Senate committee hearing. In addition to incorrectly implying that Warren is advocating for a $22 per hour minimum wage, the panelists dismissed the need for any increase in the minimum at all by relying on misinformation and distorted arguments.

At a March 14 hearing on the ties between economic growth and the federal minimum wage, Warren said that if minimum wage had been pegged to productivity as it had increased from 1960 until now, "the minimum wage today would be about $22 an hour."

On the March 19 edition of Varney & Co., host Stuart Varney and two guests, Fox Business contributor Charles Payne and Fox Business reporter Sandra Smith, mischaracterized Warren's statement to claim she was advocating for raising the minimum wage to $22 per hour. For instance, Smith claimed that Warren is "fighting for you to make $22 an hour."

Payne also misleadingly suggested Warren's numbers were incorrect by comparing the $22 figure -- which is tied to worker productivity -- to the unrelated metric of inflation.

In fact, as the Huffington Post noted, Warren was not making the case for raising the minimum wage to $22, but was in fact referring to a study by the Center for Economic and Policy Research (CEPR) that supports her position that an increase in the minimum wage is overdue. According to the CEPR study, "Between the end of World War II and 1968, the minimum wage tracked average productivity growth fairly closely. Since 1968, however, productivity growth has far outpaced the minimum wage. If the minimum wage had continued to move with average productivity after 1968, it would have reached $21.72 per hour in 2012 - a rate well above the average production worker wage."

Payne also claimed that the minimum wage is not meant to support a family and is usually earned by teenagers, saying: "This is a stepping stone. This is not something that -- it was never designed for people to live on, per say." But according to the Bureau of Labor Statistics, just over half of all workers receiving the federal minimum wage in 2011 were aged 25 and above For her part, Smith also repeated the myth that raising the minimum wage will kill jobs, but numerous studies show that's not true.

Posted In
Economy, Jobs, Wages, & Unemployment
Fox Business
Stuart Varney, Charles Payne, Sandra Smith
Varney & Co.
Minimum Wage
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