Late last week, the minimum wage was increased by 70 cents. However, as the already sagging housing market continues to get worse and businesses are closing, unemployment rates are rising proportionally.
Now it does not take a rocket scientist to understand, that raising costs in a declining market is not a very good economic strategy. In fact is downright dumb. Moves like this are certain to adversely affect the cost of goods, services and, of course, labor not to mention the impact it will have on those families whose budgets are already strained. The 70 cent increase will be gobbled up in increased costs faster than Pac Man gobbles dots. This is bound to add to more unemployment and inflation.
I really have to hand it to the flawed thinking of the geniuses on Capitol Hill for their lack of insight for helping to make a bad situation even worse. But then, why should they care? Anyway that’s my 2 cents worth…
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