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A Minority View: Higher Minimum Wage

bck Wrote: Feb 27, 2013 12:22 PM
Oh Robert, using that nasty word...Profit. If there were no profit, we would have one Walmart, one Costco, one McDonald's, Henry Ford would have made one car and stopped. What a wonderful world we would have. One of everything. No company ever uses its money to expand and higher twice as many or expand to 3 or 4 or 35,000. YOU SIR ARE THE IDIOT.

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,...