Market Correction

Origins of Minimum-Wage Legislation in the United States
4 January 2007

Editor, The Washington Post
1150 15th St., NW
Washington, DC 20071

Dear Editor:

George Will rightly argues that the legislated minimum-wage should be $0 ("The Right Minimum Wage," Jan. 4). Recognizing that Congress never behaves so wisely, Mr. Will argues that a second-best option is to let states with low costs of living set minimum-wages lower than the one set by Uncle Sam. While sensible, this proposal directly contradicts the original purpose of the federal minimum-wage - namely, to protect northeastern textile producers from lower-wage competition coming from rival producers in southern states.

Sincerely,
Donald J. Boudreaux
Chairman, Department of Economics
George Mason University
Posted by Don Boudreaux on Sunday September 16, 2007 at 5:30pm

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