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A Minority View: Higher Minimum Wage

glenn183 Wrote: Feb 27, 2013 1:13 AM
Which idiot would that be? I assume it's not Dr. Williams. If the price of health care goes up somebody else picks up the tab and the user changes little behavior as he doesn't see it until sometime in the future when his insurance goes up and then complains loudly. Anything you pay for directly yourself you WILL shop for best prince unless you're ignorant. Who DOESN'T reduce consumption of gas when the price doubles? You won't likely cut consumption in half because it's important to you but the traffic on the roads drops when price goes up. Look up elasticity of demand.

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,...