Minimum Salary?
14 July 2006
The Editor, New York Times
229 West 43rd St.
New York, NY 10036
To the Editor:
Presumably rejecting the argument that raising the minimum-wage prices many low-skilled workers out of jobs, Paul Krugman wants to reduce income inequality by increasing the minimum-wage ("Left Behind Economics," July 14).
But if (as is plausible) workers' standards of living are determined more by their annual incomes than by their hourly wage rates - and if mandated higher pay prices no workers out of jobs - why doesn't Krugman demand for full-time workers a legislated minimum annual salary? Can it be that he doesn't really believe that government-mandated minimum pay helps low-paid workers?
Sincerely,
Donald J. Boudreaux
Chairman, Department of Economics
George Mason University
The Editor, New York Times
229 West 43rd St.
New York, NY 10036
To the Editor:
Presumably rejecting the argument that raising the minimum-wage prices many low-skilled workers out of jobs, Paul Krugman wants to reduce income inequality by increasing the minimum-wage ("Left Behind Economics," July 14).
But if (as is plausible) workers' standards of living are determined more by their annual incomes than by their hourly wage rates - and if mandated higher pay prices no workers out of jobs - why doesn't Krugman demand for full-time workers a legislated minimum annual salary? Can it be that he doesn't really believe that government-mandated minimum pay helps low-paid workers?
Sincerely,
Donald J. Boudreaux
Chairman, Department of Economics
George Mason University
Posted by Don Boudreaux on
Tuesday April 17, 2007 at 11:13am