The Demons in the Democrats' Mirror

The minimum wage was raised from $5.15 to $5.85 in 2007, to $6.55 in 2008 and to $7.25 in 2009. From $5.15 to $7.25 is a 40% increase in three years.  While the increase came after several years of stagnation, one has to have his head in the sand to believe that such an increase in such a short period of time would not have consequences.  If a $30,000 auto increased 40% it would add $12,000 to the cost. Can anyone expect that such an increase would not negatively impact the willingness or ability of the consumer to buy that car?  Such economic reality is hard to escape. Yet many deny that higher minimum wages impact business's ability and willingness to buy labor.  In the past, increases in minimum wages have been more moderate and were not put in effect during a tumultuous economic downturn. Some would argue that these increases were just trying to keep pace with inflation.  But the dramatic increase in minimum wages is only part of the problem. The extension...(Read Full Post)