De la Where: Another installment of vote Republican.
*Sigh* I like De La Where's blog. They're good guys and respectful of commenters (unlike some people who shall remain nameless). However, they don't understand basic economics. Artificial influence on market mechanisms distort those markets and create more problems than they solve. As this report notes, increasing minimum wage laws increases unemployment. That is not what is intended. The idea is to give poor people more money in their pocket so they can get a leg up. However, these laws actually create more poor people by employing fewer of them. Similarly, any forced wage increases are immediately by a rise in attentant prices. It's a form of inflation and it's counterproductive.
If you're going to make it $7.25 that's an annual salary of $15,704. Can you raise a family on that? Not really. How much do you have to make to support a family? Let's assume that we can support ourselves on $20,000 a year. That means to support a family of 4 means you'd have to earn $80,000 per year as a household. So, if you're going to have one income earner and one person stay home with the kids, you'd have to raise the minimum wage to $38.46 per hour or $19.23 if both of them work. What do you think would happen to prices then?
*Sigh* I like De La Where's blog. They're good guys and respectful of commenters (unlike some people who shall remain nameless). However, they don't understand basic economics. Artificial influence on market mechanisms distort those markets and create more problems than they solve. As this report notes, increasing minimum wage laws increases unemployment. That is not what is intended. The idea is to give poor people more money in their pocket so they can get a leg up. However, these laws actually create more poor people by employing fewer of them. Similarly, any forced wage increases are immediately by a rise in attentant prices. It's a form of inflation and it's counterproductive.
If you're going to make it $7.25 that's an annual salary of $15,704. Can you raise a family on that? Not really. How much do you have to make to support a family? Let's assume that we can support ourselves on $20,000 a year. That means to support a family of 4 means you'd have to earn $80,000 per year as a household. So, if you're going to have one income earner and one person stay home with the kids, you'd have to raise the minimum wage to $38.46 per hour or $19.23 if both of them work. What do you think would happen to prices then?
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