How about this: The law of gravity is applicable to the behavior of falling objects on the U.S. mainland but not applicable on our Pacific Ocean territories Samoa and Northern Mariana Islands. You say, "Williams, that's lunacy! Laws are applicable everywhere; that's why they call it a law."
You're right, but does the same reasoning apply to the law of demand that holds: The higher the price of something, the less people will take of it; and the lower its price, the more people will take of it? The law of demand applies to wages, interest and rent because, after all, they are the prices of something.
In 2007, the Democrat-led Congress and White House enacted legislation raising the minimum wage law, in steps, from $5.15 an hour to $7.25. With some modification, the increases applied to our Pacific Ocean territories. Republicans and others opposed to the increases were labeled as hostile toward workers. According to most opinion polls taken in 2006, more than 80 percent of Americans favored Congress' intention to raise the minimum wage. Most Americans see the minimum wage as a good thing, and without it, rapacious employers wouldn't pay workers much of anything.
On the eve of the 2007 minimum wage increase, someone got 650 of my fellow economists, including a couple awarded the Nobel Prize in economics, to sign a petition that read "We believe that a modest increase in the minimum wage would improve the well-being of low-wage workers and would not have the adverse effects that critics have claimed." At the time, I wrote that I felt embarrassment for them, but at least the petition was not signed by any George Mason University economists.
According to a Sept. 30, 2010 American Samoa government press release, "Governor Togiola Tulafono today expressed his sincere gratitude to President Barack Obama for signing legislation that will delay the minimum wage increase scheduled to take effect in American Samoa for 2010 and 2011." My question to you is why would a Democrat-controlled Congress pass a measure (HR 3940), and a Democrat president sign it, that would postpone the enactment of something as "wonderful" as an increase in the minimum wage law.
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