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Wednesday, October 11, 2006

Hundreds of Economists Urge Increase in Minimum Wage

Including 5 Nobel Prize winners.

First of all, no crap. You don't have to be a Nobel Prize winner to know that it has been a ridiculously long time since minimum wage was increased.

Second of all, and more importantly, they said "future boosts should be indexed to inflation to protect workers purchasing power from rising prices".

I think a real minimum wage law should be passed that automatically increases minimum wage every year based on inflation. A minimum wage tied to cost-of-living increases will prevent workers from falling through the cracks as the have since the last increase.

That's obvious.

But I think this would have an additional beneficial effect on employers. One of the main arguments against raising the minimum wage is that it can reduce job creation and even cause employers to cut jobs. Yes, if employers have to absorb a $2.50/hour increase, I'm sure that is true. However, if they only have to pay an additional 15 cents/hour, the increase will be absorbed much more easily.

Its win-win. And its right.

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