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Obama’s Minimum Wage Plan

fiddlerMO Wrote: Feb 18, 2013 10:10 AM
The real winner is the government. increased wages means more tax revenue. If just 10 million workers have to pay and additional one dollar a week in withholding from their pay check that translates to over a half billion in tax revenue per year. Remember, low income earners don't file itemized tax returns.
fiddlerMO Wrote: Feb 18, 2013 10:25 AM
Hell, let's just make minimum wage 100 dollars per hour. Everyone will have money in their pocket. Of course they don't tell you that a fast food hamburger will then cost 200 dollars.
The government wins.

Economic research has only a tenuous relationship to economic policymaking in Washington. President Obama’s new proposal to raise the federal minimum wage from $7.25 to $9.00 is a case in point. It would bad for workers and the economy, but the administration seems to be ignoring the large body of theory and evidence on the issue.

Labor economist Mark Wilson discusses the economics of the minimum wage in an essay on Downsizing Government. Here are a few highlights:

There is no free lunch when...