Comments on: Federal Minimum Wage at $7.25/Hour – Chart of the Day

By: Federal Minimum Wage

Federal Minimum Wage — Fri, 11 Dec 2009 07:24:31 +0000

This helps the economy, especiallly at this time. Consumer spending has been in free fall. While the increase in Federal minimum wage will help millions of workers who earn minimum wages from their jobs.

By: tall girl

tall girl — Wed, 29 Jul 2009 17:59:23 +0000

I hope minimum wage increase will help someone. Full time jobs would be nice too, so many part time jobs out there.

By: Orguy

Orguy — Sun, 26 Jul 2009 22:14:00 +0000

This helps the economy, especiallly at this time. Consumer spending has been in free fall. Providing more income to workers, especially lower income workers, can only help cushion this free fall. Free falling consumer spending is what’s stifling employment.

By: mbhunter

mbhunter — Sun, 26 Jul 2009 02:36:10 +0000

OK, I didn’t quite get what you were plotting, either.

The red data represent the 1939 minimum wage adjusted for inflation, and the green data represent the 1968 minimum wage adjusted for inflation, correct?

By: mbhunter

mbhunter — Sun, 26 Jul 2009 02:24:10 +0000

Hmmmm … connecting the data with lines on the chart is misleading.

The increases in the real minimum wage are instantaneous (enacted by law). In between the increases, the inflation-adjusted wage should generally fall, due to devaluation of the dollar.

But to answer your question, I think it hurts the economy. Wage controls stifle employment because businesses cannot legally hire workers below minimum wage, even if the workers are willing to work for less than minimum wage.