At The National Review Online, Deroy Murdock writes Minimum Wage: $100 Per Hour? Don’t be small-minded, America. 3/26/12
This super-stimulus would propel America’s GDP to Himalayan heights. A $100-per-hour minimum wage would give America’s 133 million workers at least $27.7 trillion in combined buying power — every year!
Of course, this figure will climb even higher as the hefty new wage inspires virtually everyone not currently working to flood the labor market. With all the money that employers will make in increased sales, it will be a snap for them to hire America’s12.8 million jobless people, at a minimum cost of some $2.7 trillion annually. At long last, this will end — not mend — unemployment.
Good use of sarcasm. The minimum wage will affect employment if it is higher than the market wages. The problem is that market wages change with economic cycles and varies based on region an employee segment. The minimum wage rate was increased over 40% after the 2006 Congress when the economy was booming, but it’s effect lingered after the collapse and the unemployment rate for entry level workers exceeded 40%in some labor and market segments. Markets can respond quickly to market shifts, laws and regulations do not.