‘Unintended Consequences’

Craig Garthwaite’s excellent piece on the miserable side effects of raising the minimum wage left out a very important additional argument against raising the minimum wage – the Earned Income Tax Credit, or EITC [“Unintended Consequences,” Opinion, December 6, 2004].

The EITC is well targeted for the job of reducing the small amount of poverty that is still associated with low wages – i.e., single mothers, low-educated immigrant breadwinners. These low-income groups are eligible for the EITC, which supplements their earned income with a refundable tax credit. Thus, income can be raised with no fear of any disemployment effects among the group we are trying to help.

In my opinion, the EITC knocks out increases in the minimum wage for reducing poverty.

To end with a quote from Maynard Keynes: “The difficulty lies not in the new ideas, but in escaping from the old ones….” Please, you Albany politicians, try to escape from the old ideas about the minimum wage.

DAVID M. O’NEILL
Manhattan
Mr. O’Neill is an adjunct professor of economics at Hunter College

Spitzer Vows To Fix Albany

Attorney General Eliot Spitzer vows to clean up the government in the state of New York. Does this include the attorney general’s office [“Spitzer Vows to Fix ‘Broken’ Albany,” William F. Hammond Jr., Page 1, December 8, 2004]?

After all, if you have an ambitious politician trying to make a name for himself by prosecuting businessmen under arbitrary statutes, shouldn’t this be the first reform to address?

DALE NETHERTON
Farmington, Iowa

GOP Gains in Gotham

I would like to remind columnist Jack Newfield that the GOP has gained throughout America, including in sections of Blue States because its candidates have behaved like true Republicans and have advocated tax cuts, a stronger defense, educational choice, and family values, including the right to life [“GOP Gains Across U.S., But Not Here,” New York, December 8, 2004].

The GOP has lost serious ground in New York because, unfortunately, many of its candidates – including the candidates at the top of ticket – have voted and behaved like liberal Democrats.

The public will not vote for a liberal Republican when it can have a liberal Democrat.

ALICE LEMOS
Woodside, N.Y.

CFE Could Wreck New York

Andrew Wolf provides an excellent assessment of the extremely worrisome position taxpayers of New York State are soon to experience now that additional billions of dollars for our public schools will head our way [“CFE Ruling Could Wreck New York,” Opinion, December 10, 2004].

The myth that money equals quality has, in the recent past, been debunked throughout America.

Enron,World.Com, and Arthur Anderson are a few corporate examples; the American military/industrial complex and Pentagon gold bathroom faucets are some of the highlights of government fiscal waste and mismanagement.

Before the myth can become a reality, we must establish a new system for open government, transparency, and accountability that today does not exist.

Without this mechanism for oversight, spending more money on education programs will not translate into higher student achievement.

As long as the city budget and the fees paid to “consultants” are kept secret and “no bid” contracts are permitted, more money may go into the pocket of a middleman than to the students. And we will allow this because we will not know about it.

BETSY COMBIER
Manhattan
Ms. Combier is the founder of www.ParentAdvocates.org

U.N. Is Deemed a Lost Cause

Instead of giving the United Nations more prime Manhattan real estate, or asking it to move to Dar es Salaam, as historian Paul Johnson suggested, why don’t we just give it Governors Island?

No more closing down First Avenue when the General Assembly is in session [“U.N. Is Deemed A ‘Lost Cause,’ Annan or Not,” Meghan Clyne, Page 1, December 9, 2004].

There would be room for lots of embassies there, too, and thus fewer problems with diplomatic parking scofflaws.

Instead of limousines, diplomats could have grand barges. And for those who would still like to see a casino on the island, why not let the U.N. run one to help with its funding problems?

TYLER HATHAWAY
Manhattan

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