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To: JohnHuang2

Most arguments about a national minimum wage focus on the effect it has at the low end of the pay scale, by keeping out entry-level workers. There's something else that should be mentioned--the US is such a big place that the cost of living is highly variable. Therefore, a minimum wage in one part of the country might be virtually meaningless, because it is well under the effective floor at which most people could work (especially with welfare available), and might be a very high effective wage in others.

I wouldn't be surprised to hear that Samoa is such a place, and the minimum wage boost is going to be so high relative to the cost of living that there is all sorts of unemployment and other economic dislocation (e.g., substuting capital machinery for workers, who then go on the dole.)


22 posted on 01/13/2007 5:58:32 AM PST by Pearls Before Swine (Is /sarc really needed?)
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To: Pearls Before Swine

If the minumum wage results in the 75% of AS being unemployed, do you think Pelosi will understand that she is at fault?


32 posted on 01/13/2007 7:50:41 AM PST by patton (Sanctimony frequently reaps its own reward.)
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