Today I was asked, on a FaceBook forum , a question about minimum wage. This is my answer .
Our Government mistakenly thinks that it can "manage the economy" and use manipulation and distortion of market forces to achieve what always sound like very desirable and worthy goals. Yet these goals are nothing more than wishful thinking and a form of Socialism that degenerates into rules, regulations, coercions and taxes. Natural market forces are distorted by these rules. Despite the distortion , the market will naturally seek to correct these distortions. Often there are unintended consequences. As an example, I site the minimum wage that you ask about. Market forces will respond to an increase in the cost of labor with an increase in prices resulting in a higher cost of living and no real increase for recipients of the minimum wage. Consider also the origin of our "illegal" alien problem. Is this not simply a black market for labor that is driven by market forces that seek to reestablish the true value of entry level employment? The Government should provide a sound currency, security , and conditions favorable to commerce. Government should not manage or direct the economy