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A Minority View: Higher Minimum Wage

3129 Wrote: Feb 27, 2013 5:38 PM
the demand for labor will not change. However, source of supply will change. Every worker in America can be replaced by a mojado. Viva la revolucion.
Dean197 Wrote: Feb 28, 2013 9:28 AM
We should be so lucky. In ten years a thousand dollars will buy a human brain's worth of processing power. Laborers will be replaced by robots when robots that can do the same job are cheaper.

In his State of the Union address, President Barack Obama proposed raising the minimum wage from $7.25 an hour to $9 an hour. That would be almost a 25 percent increase. Let's look at the president's proposal, but before doing so, let's ask some other economic questions.

Are people responsive to changes in price? For example, if the price of cars rose by 25 percent, would people purchase as many cars? Supposing housing prices rose by 25 percent, what would happen to sales? Those are big-ticket items, but what about smaller-priced items? If a supermarket raised its prices by 25 percent,...