Monday, July 13, 2009

Yet Even More on the Logic of the Minimum Wage

I'm a bit of a sadist in that I find the minimum wage fascinating. That it's an idea that persists suggests where we are in the fight between dead ideas, demagoguery and economic enlightenment. From Peter Schiff (via Club for Growth) who is now running to replace Senator Christopher Dodd, Chairman of the Senate Finance Committee:

The only way to increase wages is to increase worker productivity. If wages could be raised simply by government mandate, we could set the minimum wage at $100 per hour and solve all problems. It should be clear that, at that level, most of the population would lose their jobs, and the remaining labor would be so expensive that prices for goods and services would skyrocket. That's the exact burden the minimum wage places on our poor and low-skilled workers, and ultimately every American consumer.

Since our leaders cannot even grasp this simple economic concept, how can we expect them to deal with the more complicated problems that currently confront us?

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