Poverty in America... would raising minimum wage help?

“Consider that the official poverty threshold of $22,000 per year for a family of four implies a “poverty” wage of $11 an hour. … The flaw here is the implicit assumption that all minimum-wage workers not only have families to support, but do so single-handedly.”
Families Don’t Depend on the Minimum Wage

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Chip Van Emmerik's picture

No! Raising the minimum wage would not help; it would make matters worse. Artificial price fixing, anywhere on the economic continuum, by the government invariably leads to diminished buying power.

Why is it that my voice always seems to be loudest when I am saying the dumbest things?

Sean Fericks's picture

If the government artificially inflates the "value" of a particular aspect of production, that added cost will inflate the "value" of the entire produced product, making it more expensive. Take more than 30 seconds to think about it and you will see that all minimum wage hikes accomplish is increased inflation (hurting retired and fixed-income people, and confusing the market).

Sean Fericks's picture

Frankly, most of the cart boys I see at Wal-mart are not worth $6/hr. In Nevada, you have to pay them $8.25.