Ralph Nader who has done a lot for automotive safety is now speaking out on the Federal minimum wage. While I admire his record of advocacy for auto safety, I think he is dead wrong on the minimum wage.
In a recent interview with CNN, he said if minimum wages had kept up with the cost of living since 1968 the wage in today's dollars would be 10.50 an hour.
Nader argues that it would be good for the economy because 30 million Americans are stuck with the minimum wage. Thus, a wage boost would un-lease a great economy because the money would be quickly spent and have a multiplier effect.
Couple of question come to mind, where would the food industry get the extra $ 3.00 per hour? If you follow the logic of a $ 3.00 increase per hour or wages up by 1/3 could you raise the price of pizza by a third and still retain your business? Would it drive people back home to make their own or opt for frozen pizza? How many parlors would close, how many jobs would be lost?
Look it's simple, the system we have now demands no minimums, theoretically you could offer a dollar an hour but you wouldn't get any employees. I think the food industry should compete for workers and pay what they have to in an effort to attract employees. It will be more than $ 7.50 an hour for quality help.
Why do meddlers like Nader insist on circumventing a market economy ? After all, isn't it a beautiful system that tells manufacturers and sellers how many hot dogs will be needed this weekend. You don't have to guess, it's all about demand, no demand, lower the price. It's a wonderful system. Nader has this one wrong, $ 10.50 an hour minimum wage would kill jobs.
Write me DanRivers@ClearChannel.com