Goshen News, Goshen, IN

Z_CNHI News Service

February 21, 2014

Benefits of hiking minimum wage are an illusion

Editor's note: CNHI newspapers that are not weekly subscribers to Taylor Armerding's column may publish this one if they notify him at t.armerding@verizon.net.

I don’t know anyone averse to making more money.

Sure, I have friends who demonstrate, through words and actions, that money is not the most important thing in their lives. But I haven’t seen one of them turn down a raise.

I wouldn’t, either. (That's just a gentle hint to any employer who wants to heed President Obama’s call to inject more money into the economy by giving some of it to me. I promise to spend it, not save it, because saving is what hurts everybody but the rich.)

Still, I have a hard time believing that if government once again invades the marketplace and declares that nobody can be paid less than $10, $12, $15 per hour – whatever – the economy will rebound, inequality will decline, employment will increase, and happy days, or at least happier ones, will be here again.

If only.

Yes, I’ve heard the pundits who say that putting more money into the pockets of the poor will juice the economy, since they’ll spend it right away, raising demand for products. Factories will ramp up inventories, more people will be hired, and the Great Recession will be a distant memory.

I’ve heard them declare with unshakeable confidence that it will increase the incentives for the unemployed to work because all of a sudden they will be able to make more by getting a job than by collecting government benefits.

I’ve been told that raising the entry cost of labor by 20 to 40 percent will have no impact – none – on hiring decisions or the number of hours that employees work.

In short, it will be like magic, having only positive effects and no unintended consequences.

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Poll

Three Goshen elementary schools — Chandler, Chamberlain and West Goshen — are providing free meals to all students during the school year as part of the U.S. Department of Agriculture’s Community Eligibility Provision of the Healthy Hunger-Free Kids Act of 2010. Nearly 80 percent of students at Chandler, 89 percent of students at Chamberlain and 78 percent of students at West Goshen already qualify for free or reduced-price lunches based on their family income. How do you feel about the new lunch program?

I think it’s a good idea to feed all the students free of charge
I think those who can afford it should pay for their school meals
I think all students should be required to pay for their school meals
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