Romney: Let's raise the minimum wage
Alternate headline: Romney not running for President in 2016.
Republicans are correct to aim toward blue-collar economics, especially after the debacle of focusing on the so-called "47 percent." The minimum-wage hike, especially as proposed by the Obama administration, is the wrong way to go about it. The US has repeatedly hiked the minimum wage, and yet has ended up in the same position in regard to the percentage living in poverty anyway. Why? Because raising the minimum wage only temporarily boosts buying power, as prices rise and jobs erode in response to the higher costs it imposes.
In fact, as the CBO pointed out, the majority of the costs end up being borne by the poor the minimum-wage hike is supposed to help...
If minimum-wage hikes solve problems of poverty and inequality, then we would have solved both of those issues decades ago. We have yet to see any evidence that they actually produce anything but an extremely short-term benefit, and mostly to those who don't need it. (Amity Shlaes presented an argument this week that it actually made the unemployment situation during the Depression substantially worse.) Unfortunately, the GOP hasn't done a very good job of pointing out the pitfalls of this policy, while Democrats mainly demagogue the point on "fairness."Also read:
Republicans Are in It to Win It
Why Lois Lerner Should Be Granted Immunity
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