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Why this is not the right time to push for higher minimum wage

In the wake of the coronavirus, state governments got to decide what businesses are essential and which ones are not. Some of the essential businesses ended up being the ones that pay low wages; grocery stores, trucking companies, cleaning companies. There is a good explanation for this occurrence; a lot of essential jobs are associated with the service industry and the service industry is not as highly productive as other sectors of the economy. Hence the low wages of the workers in the service industry. But that has not stopped people calling for higher wages for these "essential workers". The  following...

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Access to childcare is essential to reopening the economy

States are starting to open back up some of their non-essential businesses. With that has come one issue: parents are having a hard time accessing childcare. The issue is especially acute in states like Texas where childcare providers can only accept children of essential workers. This has proven as a dilemma for parents who have to work and might lose unemployment benefits if they do not go back to work. While some centers in Texas are operating at less than full capacity and would be able to take in more children, the state does not currently allow them to. But Texas...

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Research finds consumers pay for corporate taxes through high retail prices

Corporate taxes is one way that state and federal governments collect tax revenue. It is one of the most important factors businesses consider when deciding production location. In the United states, each state levies corporate taxes differently and some states do not levy corporate taxes. Depending on how they are levied, corporate taxes have been found to influence location decisions of businesses. Corporate taxes may also affect the rate of business formation in an area. Not much focus is however given as to how corporate taxes affect consumers. But economic theory asserts consumers pay for some part of most taxes levied...

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7,500+ Minnesotans tell Walz: Let us work!

For the past couple of weeks, American Experiment staffers' inboxes have been flooded with Minnesotans telling us how Governor Walz's stay-home order has destroyed their finances, hurt their mental health, delayed important medical procedures, closed their businesses, torn apart families, and more. Many of these folks were willing to give state leaders the benefit of the doubt and get on board with the administration's goal to "flatten the curve." But when weeks turned into months, the individual toll on their livelihoods and families became too much to bear. We couldn't stand by without giving these Minnesotans a platform to speak. Here are...

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Minnesota lockdown extended for restaurants and other customer-facing businesses

Today, Governor Walz held a press conference to let the state know the next step for the stay at home order. Minnesota's stay at home order was expected to expire on May 4th. Governor Walz has extended the stay at home order for some businesses like restaurants, dining places and accommodation places to May 18th. Retail places can however open for curbside delivery or pickup. Open businesses are expected and required to maintain social distancing as well as sanitizing rules. The state is focused on keeping the stay at home order in place while the hospitals increases medical capacity. This includes...

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Webinar Archive: Master Class in Public Policy

Thank you to the hundreds of viewers that joined us for our Master Class in Public Policy this April! We had a phenomenal time sharing our research with you all. If you missed the live viewing, but want to go back and watch one of the webinars, you can find the links below. Stay tuned for more events, both in person and online, to come. Webinar Archive John Phelan on What can state governments do to influence the economy? Watch here. Catrin Wigfall on How good are Minnesota's public schools, really? Watch here. Isaac Orr on Everything wrong with the Green New Deal. Watch...

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Small businesses are now having to compete with high unemployment benefits in order to keep workers

We have seen numerous times government policy intended to benefit some people producing some unintended negative effects.  The CARES Act is the most recent one of those policies with negative unintended effects. Workers are asking to be laid off because unemployment is simply paying better than being employed. As a country, this is something we should have expected and should accounted for. Research has proven over and over again that generous unemployment payments go a long way in making people prefer unemployment. Especially for low wage workers, unemployment insurance may pay more or at least equal to their wages, making them...

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