Wednesday, October 13, 2010
Today's minimum wage SHOUT!
If average output (income, same thing) grows why does the economics profession not understand that the minimum wage should grow along with it (as well as inflation) -- instead of being joined at the hip with the concern -- seemingly their only concern -- that a minimum wage raise may cause a rise in unemployment? Why should it cause a rise as long as the wage goes up in step with inflation AND OVERALL PRODUCTIVITY GAINS?!
Other nations -- sane nations -- the minimum wage is raised in step with inflation AND PRODUCTIVITY!!!
In the insane nation -- what 1968 Americans would call early 2007 US -- our federal minimum wage dropped almost in half (in constant dollars) while average income (output, whatever) doubled.