Tuesday, February 12, 2013

Last Call

The big pull from the President's State of the Union, something I totally did not expect:  a call to raise the minimum wage to $9 an hour.  Yggy:

This is an issue people have been debating politically for a long time, and it's no coincidence that perhaps the leading pro minimum wage empirical study was co-authored by Alan Kruger who's currently chairman of Obama's Council of Economic Advisors. It's interesting to think about this idea in the context of an environment where the Federal Reserve says it will allow inflation to rise to 2.5 percent, but doesn't currently expect it to reach that level. In principle a bump in low-wage worker wages could lead to exactly the kind of tolerated-but-not-expected inflation that the Fed has talked about.

And even $9 is not a living wage, but it's certainly better than $7.25.

Going to be interesting watching the GOP that hard working Americans who have minimum wage jobs are making too much money.

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