Comments (2)

• David Roemer

  Everyone now knows that minimum wage laws don't increase wages and cause unemployment. Everyone is now in favor of minimum wage laws because of the impact it has on immigration. Full employment is interpreted by many to be a labor shortage to be remedied by increasing immigration. Before the collapse of the Soviet Union and liberalism, conservatives were against minimum wage laws and liberals were for them. Now, Democrats and Republicans fight about the minimum wage for political reasons.

  Published: October 28, 2009 9:53 AM

• Alex

  There is no confusion over the concept of a real minimum wage. Those who object to a reduction in the nominal wage to match decreases in the price level do so solely because they want workers to get higher real wages.

  Of course, higher real wages are possible in the long run only by increases in productivity. But those like Acorn and some in Congress and the present administration don't like that answer because they want a redistribution of income, in spite of the fact that that tack would likely lower long run productivity and hence attain lower average real wage rates. Such redistributionists are quite willing to trade a reduction in average incomes for a more even income distribution.

  Published: October 28, 2009 12:36 PM