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A Minority View: Higher Minimum Wage

michael1819 Wrote: Feb 28, 2013 10:00 AM
Wages indeed have caused prices to go up. It is no where more apparent than in the fast food industry. A Big Mac meal used to cost less than 3 dollars. Fries were 29 cents. As wages increased so did the prices. Despite operating at maximum efficiency prices still rise. Used to be able to buy 4 cans of green beans for a dollar. Now they are 75 cents each. Even though big box stores have produced their own branded canned goods. So business looked overseas for cheaper sources of supplies. Hence American suppliers suffer. This is also true of taxes. when ever government increases expenses of business, they will find a way to try and keep their prices competitive. These minimum wage jobs were designed to give young people work experience.

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,...