Increasing the minimum wage is the wrong answer.

The idea of raising the minimum wage – in Polk County, Iowa, or anywhere, is an emotional issue.  Wouldn’t it be nice if everyone earned a “living wage”?  On the logical side, just remember that raising the minimum wage will result in more people not being able to find work – especially the least skilled workers.  Also know that it will put upward pressure on prices that will further raise the cost of living – which will put more political pressure to further raise the minimum wage.  Increasing the Earned Income Tax Credit (EITC) is a better idea.  It is paid for by all income tax payers and targets those who have real need, without putting further upward pressure on prices.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s