RSS 2.0 FeedIn Case You Had Any Doubt
by Doug MataconisConsider the words of Steny Hoyer, the House Majority leader, on the minimum wage increase:
House Majority Leader Steny Hoyer, D-Md., said passing the boost ‘is simply a matter of doing what’s right, what’s just, and what’s fair.”If the minimum wage had been adjusted with the cost of living on an annual basis since 1968, a minimum wage worker would not be making $5.15, not be making $7.25, would be making $9.05,’ he said.
Indexing the minimum wage to inflation has been advocated by many on the left in recent years. If the political situation allows for it, I expect the House Democrats to make this their next step. That way, they won’t have to worry about pesky things like voting.
Related Post:
The Real Cost Of A Minimum Wage Increase
Debunking Pearlstein
Nevermind that driving up labor costs by indexing the minimum wage to inflation creates a positive feedback. Labor costs go up. This creates upward pressure on prices. If the price hike materializes then it will show up in inflation. And if you index the minimum wage to inflation then labor costs go up again.
The counter argument is that very few in the work force make the minimum wage for any extended period of time so it is likely to have little effect. That said, you cannot continue to drive up costs via government mandate and never expect it to have ramifications at some point.
Comment by tkc — January 10, 2007 @ 1:06 pm“they won’t have to worry about pesky things like voting”, or more importantly, having that vote brought in front of the voters. The focus of a magnifying glass does wonders in a democracy, those in power would rather not be examined as can be seen by their means of accomplishing nearly any pork spending by tacking it onto an otherwise reasonable piece of legislation.
Comment by T F Stern — January 10, 2007 @ 1:11 pmTF,
Sunlight truly is the best disinfectant…
Comment by Brad Warbiany — January 10, 2007 @ 2:12 pmSome how they managed to get an index linked minimum wage passed in AZ this last election. I expect our recession to begin shortly.
Comment by Chris Byrne — January 11, 2007 @ 11:11 am