Yup, proving that the lessons of failure during the Great Depression (like trade restrictions--check, higher taxes--check, gov't spending that crowds out the private sector--check) are truly lost on today's liberals in Washington, the minimum wage is doing what: it's going up. Un-be-liev-able. It's true that all of the above were instrumental in turning a bad recession into the Great Depression, especially the artificial propping up of wages and prices. Completely counter to the ability of the free market to adjust to weak economic conditions--meaning that if the price of labor floats to its proper level, companies will hire more people than if wages are artificially propped up. It's simple economic logic.
Read the brilliant column "Mandating Higher UnemploymentBruce Bartlett, 07.24.09, 12:00 AM EDT This is a terrible time to raise the minimum wage."
"If there could ever be a worse time to raise the minimum wage, it's hard to imagine it. Businesses everywhere are desperately trying to cut their labor costs. At many companies workers have accepted significant pay cuts so that their employers could avoid layoffs. But this option is not available to businesses employing large numbers of minimum wage workers. Since they are legally prohibited from reducing wages they have no choice but to lay off workers."
Read the rest: http://www.forbes.com/2009/07/23/raising-minimum-wage-opinions-columnists-bruce-bartlett.html
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