Wednesday, December 13, 2006

Another Reason To Not Raise Minimum Wage

Not only that, but this article is also another reason why Conservatives should not be worried about the 2008 elections.

The key thought about minimum wage, as well as other "ways the democrats help the lower class," Believe I say, not what I do.
You can't claim that education is your No. 1 priority while pandering to teachers unions. Nor can you fight against international trade when the evidence is clear that it creates wealth and profoundly improves the lives of people in poor countries.

(And, in the short term, trade makes possible all those cheap goods at Wal-Mart that stretch the paychecks of the people the party is supposed to represent.)

Raising the minimum wage? Yes, it will make a lot of people better off -- and it will speed up the process of outsourcing and automation, which will make a lot of other people worse off. Raising the minimum wage is not an economic plan for making the nation more productive; at best, it's a transfer of wealth, and not even the most efficient way of doing that.
But no! We HAVE to raise the minimum wage to $7.50! We have to increase our minimum wages by 45%, while other countries are lowering their wages. That doesn't look like an incentive to outsource at all, does it?

Raising the Minimum wage; A short term political gain, leading to long term Economic failure.

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