Obama to Raise Minimum Wage

Barrack Obama has proposed an increase in the minimum wage to $9.50 per hour by 2011.

• The public argument: costs are rising, and people making the minimum wage cannot afford to live for things any more.
• The political motivation: the union members and many others in the Democratic party base have always favored increases in the minimum wage in particular and wages in general.

Obama takes it one step further, by proposing a permanent indexing of the minimum wage, so that it automatically increases with inflation.

Most conservatives would counter that raising the minimum wage would force employers to hire fewer people, and/or to raise prices. In personal experience, my Extra Value Meals always seem to increase in price whenever the minimum wage goes up.

Some Liberal arguments for increasing and/or indexing the minimum wage:
http://www.epi.org/content.cfm/issueguides_minwage_minwagefaq
http://www.commondreams.org/views01/0829-08.htm

A middle of the road view:
http://www.wisegeek.com/does-raising-the-minimum-wage-cause-inflation.htm

Conservative arguments against the minimum wage:
http://www.cato.org/pubs/pas/pa106.html
http://www.house.gov/jec/cost-gov/regs/minimum/50years.htm

The vast majority of people in America make more than the minimum wage, anyway. In theory, if you ate at In-N-Out (which pays far above minimum wage), your hamburger prices should hopefully be less affected.

What's your opinion on the minimum wage? We welcome your comments.