February 9, 2014
NO. NEXT QUESTION? Is There A Right Time To Raise The Minimum Wage?
But note this: “Workers who previously had higher wages are outstripping their savings and being forced into lower-wage work. And workers who might have moved up the employment ladder from minimum-wage jobs feel stuck there. The more workers who feel trapped in low-wage work, the higher the political pressure to raise the minimum wage. If you believe, as I do, that demand curves for labor slope downward, just like almost every other demand curve, then increasing the minimum wage is probably a bad idea right now. But the political logic is impeccable.”
If “impeccable” political logic leads to a disastrous outcome, then the political system is dysfunctional.