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Obama’s Minimum Wage Plan

johnm h Wrote: Feb 18, 2013 10:05 AM
The problem is that the minimum wage hits marginal employees and they drop into dependency from which it is difficult to escape. They then become loyal democratic voters. There is no learning.

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...