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A Minority View: Higher Minimum Wage

3129 Wrote: Feb 27, 2013 6:26 PM
Since every business in town will be in the same position, just add $1.00 to everything the menu. People like me cannot afford to go to restaurants and ice cream parlors anyway since my taxes went up along with food prices. Thanks a lot Obama. Viva la revolucion.

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,...