Tuesday, April 10, 2012

Much ruination

Bentley university's Scott Sumner notices the New York Times's economic illiteracy;
Start with a few facts:
1.  Congress raised the minimum wage by roughly 40% between 2006 and 2009.  How’s that working out for youth employment?
2.  The past 3 1/2 years saw the slowest NGDP growth since Herbert Hoover was president.
Looks like it wasn’t exactly the best time for a huge rise in the minimum wage, doesn’t it?  Not according to this New York Times story, indeed the 40% increase was far too small, it should have been closer to 100%
 As everyone knows, the best time to raise your prices is when your products aren't selling?

One wonders what the Times thinks would happen if the minimum wage (at both state and federal levels) were abolished; that people would go to work for no pay?

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