In the State of the Union address, President Obama endorsed a bill to raise the $7.25 federal minimum wage by nearly 40% over three years to $10.10 an hour in 2016. That would be an exact copy of what President Bush did on May 25, 2007, by signing into law a 40% minimum wage hike in three stages — from $5.15 to $5.85 on July 24, 2007, then $6.55 a year later and $7.25 on July 24, 2009. Have we not learned anything from what happened last time?
“The basic dilemma of the welfare state … is that the more generous the benefits, the greater will be not only the tax distortions but also, because of moral hazard and benefit cheating, the number of beneficiaries. This is a field where Say’s Law certainly holds in the long run: the supply of benefits creates its own demand…”
America faces two very serious budget problems: Democrats, and Republicans. Partisan wrangling over the brief shutdown of about 17 percent of the federal government has been unnecessarily long and convoluted because both sides keep repeating their misleading talking points and diverting attention away from the central issue — deficits and debt — and toward extraneous or irrelevant topics.