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A Minority View: Higher Minimum Wage

Anonymous6062 Wrote: Feb 27, 2013 1:19 AM
It IS called the LAW of demand. In fact, it is just as sure thing as the LAW of gravity. Demand will fall in price increases. Demand rises as prices decrease. Some products and services fall more than others. This is called the elasticity of a product or service. It is a simple concept, really.

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,...