Wednesday, February 13, 2013
Causing More Inflation
If the Federal minimum wage is raised to nine dollars per hour, it will very soon only have the buying power of the current minimum wage because of inflation. It will be a sop to Obama's union backers whose contractual raises are often tied to the rise in minimum wage but will have the effect of killing off many entry-level jobs. Yes, those first jobs for high school students (who do not need "a living wage" because they are not responsible for supporting themselves and certainly not are not required to meet the expenses of their entire family) are likely to evaporate. In a market where work is already scarce, a higher minimum age will only make finding employment harder.