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A Minority View: Higher Minimum Wage

douglas183 Wrote: Mar 04, 2013 12:41 AM
Any raise in minimum wage reflects upwards through almost every union contract ever conceived. This 25% increase sucks for the bottom unemployed teen and is a boon for the top wage earners in all unions.

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,...