Saturday, July 07, 2007

3949

The minimum wage increase

It's a battle we never win, a battle to fight economic illiteracy among Americans, according to Government's helping hand also hurts. If the minimum wage increase is so terrific at reducing poverty, why hide it in the war supplement bill and delay and stagger the increases? Because the negative affects are easier to hide. It reduces productivity and employment opportunities at the bottom, and also affects very few employees, who are often young and/or part time.

One economist reports that for every 10% increase in minimum wage the poverty rate increases by 3/4 of 1%. Law makers understand this, but they know the American voter doesn't, so it is always a big issue at election time, like 2006.

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