Google Preferred Sources
ForumsShare

The Perils of Adjusting Minimum Wage

By Rod Anderson, CP Cartoonist
Credit :

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

Was this article helpful?

Become a CP Insider.
Help keep The Christian Post free for everyone.

The truth has a cost, and Insiders help carry it.
A dollar from an Insider comes with no strings attached. It keeps our reporters on the story, keeps our journalism open to everyone, and keeps every editorial decision in the newsroom, where it belongs.

Become a CP Insider and choose the amount you want to pay. You can change, pause or cancel anytime. As a thank-you, you’ll get:

  • The Insider Newsletter, a members-only monthly letter from our newsroom

  • Ad-free reading across christianpost.com


From as low as $8.25/month
Prefer to give once?

We’re sorry to hear that.

Hope you’ll give us another try and check out some other articles.
Return to homepage.

Most Popular