Saturday, November 25, 2006

Minimal Difference

The blogger at Back Talk, with tongue planted firmly in cheek, expresses support for raising the minimum wage because "raising the minimum wage is a complete non-issue because it doesn't help the poor, but it could be that the wage is so low that raising it a bit doesn't hurt them much either.

That actually coincides with what The Oracle has been thinking on the issue. Increases in the minimum wage can be problematic because they force employers to either raise prices or reduce costs, possibly by hiring fewer workers. Whether raising the minimum wage is inflationary or increases unemployment, the effect is felt mostly by the poor that supposedly were being helped. That being said, in this economy, it would seem that a point has been reached where the minimum wage is largely irrelevant, meaning that a sensible increase would likely have minimal impact. That being the case, political expediency might cause one to support such an increase.

Hat Tip: Instapundit

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