How does raising the minimum close the income gap!

Yup, this is a real question.

If people earning $7.25 go to $10.10, what eventually happens to the people earning $10.50 or $11.00 or $12.00 …?

A rising tide raises all boats, remember? The point is that while raising the minimum wage by law may have limited short term benefits for relatively few Americans, to say it will close the income gap seems a stretch.

As always, the real solution is the ability for workers to add value through improved skills. In addition, some economists including Paul Krugman say the Affordable Care Act will create more demand for labor because of people dropping out of the workforce. Won’t such a shortage force higher wages as well?

What’s your view?

16 comments

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  7. if you think about it ,its not far from a 3 dollar an hour increase,that’s quite a jump,especially when you compare it to ss col increases received by seniors.nothing to do with economics i say, and more to do with politics as usual. it’s just more of the social/economic equality thing..be it government workers or sub-contractors or for that matter the private sector at large- we all wind up paying more for such changes through the increased cost of goods and services we receive.

    the tie in by krugman is just another example of the chaos and disruption that has been created by the ahc act.I think people like krugman who has supported the administration all along and even joathan turley (gwu) another flaming liberal supporter who lately speaks more like a conservative and constitutionalist…are beginning to hedge their bets and back off of unilateral obama support.

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