Wednesday, January 24, 2007
Raising the minimum wage is a low-cost way for politicians to show they care for the downtrodden in society - low-cost to the individual politicians, that is - not to those negatively affected by higher minimum wages.Costs are always costs to someone. Minimum wage increases are a low-cost way to politicians; they tax only a subset of businesses or, if the tax can be shifted forward, the consumers of the products and services created by minimum-wage labor. To one of those two groups, they are not low cost.
There is no free lunch; it's only a question of who pays.