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A Minority View: Higher Minimum Wage

deestafford Wrote: Feb 27, 2013 9:52 AM
Once again, Dr Williams' brilliance takes what is complicated and un-understandable to the "ruling elite" and simplifies it using grocery store arithmetic. Too bad they don't go "grocery shopping."

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,...