Only to member AC?

Question

how can you not say the minimum wage bill. By itself not through our economy into a recession?

If minimum wage raises too fast. This will casue multiple problems. Agree?

Answer 1

When you account for inflation, minimum wage in 2006 is 30% lower than it was in 1979. While 1979 is admittedly getting a bit hazy in my memory, I seem to remember the world not coming to an end when minimum wage was effectively 30% higher. So I see no reason that calamity would ensue today with a slight raise in minimum wage.

There would be some inflationary pressures, to be sure, but maybe that's the social cost of keeping people who are working full time from having to scrape by on roughly $10,000 per year.

And...as roughyl half of the US Population lives in states where the minimum wage is higher than the federal minimum wage, the effects of any change in the federal rate would be limited, anyway.

I included a link to the Economic Policy Institute's analysis of the minimum wage issue. It makes for some interesting reading, if you're interested in this issue.

Answer 2

If the minimum wage rises too fast, yes that will cause some problems, wage distortions and unemployment of the lower earning marginal workers.

But of your question, I have one:

"Only to member AC?" What does that mean?

Added:
Now that my answer has posted, I have another question. When I first came to this page, there were no answers, but now there is an answer and the note says it was made "3 days ago"--what the heck is Yahoo doing?