“Minimum wage should match/keep up with the cost of living.” ?
Actually, the minimum wage is always tied to the cost of living.
They are joined at the hip, so to speak.
But it’s a matter of mandated minimum wage vs market-driven minimum wage, that determines the consequences (intended or unintended).
Mandated minimum wage (government mandated) guarantees disruption in the free market, just as surely as mandated price controls.
Raising mandated minimum wage gains popular support—while it seems ‘fair’ and ‘compassionate’, it creates a snowball of forcing higher prices and reducing labor market openings.
Before long, inflation repeats unaffordability and more unemployment , resulting in demands for repeating raising mandated minimum wage.
When free market determines wages and prices, both are driven by reality.
Change is slower, better (wages and prices).
Inflation is controlled (wages and prices).
Responding to popular demands with emotion-based government control of wages (and thereby prices) spins the merry-go-round, more and more and faster and faster.
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Daddy was a farmer and rancher and pecan grower.
He often referred to the debacle when the government tried to dictate farm policies.
Summary—“IT MAKES CLEAR THAT GOVERNMENTS DON’T KNOW HOW TO FARM.”
AND, governments don’t know how to run business.
Government should stick to guaranteeing our freedom to engage in business as we see fit with market decisions that work.
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So true, and more—
+ Governments don’t know how to farm.
+ Governments don’t know how to run business.
+ Governments don’t know how to run churches (can’t improve on the first amendment).
+ Governments don’t know how to improve on the second amendment (not allowed to “abridge” the right to bear arms)—in fact, all gun-control laws are unconstitutional.
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