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A Minority View: Higher Minimum Wage

Michael3783 Wrote: Feb 27, 2013 12:08 PM
And of course, proponents of higher minimum wages omit the fact that increases disproportionately benefits BIG business, over small and mid-sized businesses, based on the simple concepts of "economy of scale" and entry costs to do business. Same for ObamaCare and paid sick/vacation time requirements.

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,...