Minimum Wage, Maximum Politics
Economist Brad Shiller writing in today's WSJ:
"The federal minimum wage went up on July 1 and hardly anyone noticed. And why should they have? The federal minimum had been stuck at $5.15 since 1997, while average hourly wages had risen nearly 40%. Even entry wages at McDonald's had crept above $7 in the decade of legislative inaction. So the bump from $5.15 to $5.85 was largely a nonevent.
It's no wonder, then, that few workers noticed, much less celebrated last week's hike in the minimum wage. The only people celebrating are the politicians who are already proclaiming how they helped the poor, low-income worker."
MP: NOT!
4 Comments:
"The only people celebrating are the politicians who are already proclaiming how they helped the poor, low-income worker"...
Hmmm, the only accomplishment of Pelosi's 100 hours crapola...
I'm guessing we'll be treated to another round of minimum wage myths foisted off by those who's grasp of simple economics is nil...
This is so true. I completely agree with the author of this article. The minimum wage raise of July 1st is insignificant. Personally, I advocate for a living wage, which would be more reflective of the real needs to take care of, and would raise more people above the poverty line.
If that does not work, politicians should at least try to see the economic reality as it is, and become aware that prices, especially nowadays, do affect people's incomes. I would index the minimum wage to a moving-average of such prices.
karen says: "Personally, I advocate for a living wage, which would be more reflective of the real needs to take care of, and would raise more people above the poverty line"...
A question karen, are YOU willing to open up YOUR wallet to pay this so called, 'living wage' to people who's job skills make it a questionable proposition to pay them a minimum wage in the first place?
A suggestion karen, consider reading Dr. Sowell's excellent A Citizen’s guide to the Economy ...
Why doesn't anyone talk about 'incentives' anymore. Why would anyone work if they had a true living wage?
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