The Perils of Adjusting Minimum Wage

0
Sign Up for Free eNewsletter ››
By Rod Anderson , CP Cartoonist
March 1, 2013|8:09 am
The Perils of Adjusting Minimum Wage

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, would people purchase as much? It's not rocket science to conclude that when prices rise, people adjust their behavior by purchasing less.

Read more at http://www.christianpost.com/news/a-minority-view-higher-minimum-wage-90888/#hZGXdKlO2YGEP4qB.99

 

Videos that May Interest You

Christian Film Producer Discusses What She Doesnt Like About Christian Films

Advertisement