Minimum wage hikes aren’t going to ruin America’s economy
The following snippet from a Motley Fool column on McDonald’s is interesting with regards to the minimum wage hikes that are sweeping the nation:
One important note that came up during the Q&A is on menu-price increases. Historically, the company has raised prices annually just below the “food-away-from-home” inflation index, which has been “running at about 3% a year the last couple of years,” said CFO Matthew Paul. In 2007, he estimates, it will probably come in a little higher, perhaps around 3.5%, as restaurant operations gear up for minimum-wage increases.
A reasonably set minimum wage isn’t going to monkeywrench the economy. However, the minimum wage can never be made into a so-called living wage. If it were, it would severly hamper the economy and shut huge classes of workers out of the labor market.
Leftist professor Henry Farrell and The Economist writer Megan McAdrle clash over the minimum wage on Bloggingheads.tv.
