Progressives Should Be Wary Of A Minimum Wage Increase
President Obama set off quite a debate when he proposed raising the federal minimum wage from $7.25 to $9 per hour. Minimum wage hikes poll very well, especially among progressives. Over at the American Spectator, I argue that progressives should look elsewhere for ways to help the poor:
Then there is the matter that high minimum wages help big businesses at the expense of smaller competitors. When states are considering hiking their minimum wages, big companies like Walmart routinely lobby in favor of the increases. They know that while they can afford the extra payroll, the mom-and-pop store down the road might not be able to. Advantage: Walmart.
Just because a progressive proposes a policy doesn’t mean that the policy is, in fact, progressive. A high minimum wage causes regressive income redistribution.
Read the whole thing here.