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A Minority View: Higher Minimum Wage

arpiem Wrote: Feb 27, 2013 10:49 AM
Employers should not be told by the government how much to pay their employees. If wages are too low, nobody witl work for them. It's a matter of what the market will bear for certain skills or lack thereof.

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,...