The Hill News

The New York Times reported this morning that a number of liberal Democratic politicians want to increase the minimum wage from $7.25 to as much as $10.

This proposed increase is in the midst of the weakest economic recovery since the Great Depression and stubbornly high unemployment. Under classical economic theory, an increase in wages leads to decrease in employment. So an increase in the minimum wage would cause the unemployment rate to increase and national income to decline.

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