On The Minimum Wage...

"Democrats are talking about an increase to $7.25 an hour, and they're promising to push it through in the first 100 hours of the Democratic majority rule. (President) Bush has said he supports an increase, but won't haggle about the numbers in public... Bush has said that he also wants to be sure that the increase is done in ways that won't hurt small businesses. Which is, of course, impossible. Regardless of where you stand in the intense debate over whether increases in the minimum wage reduce the number of jobs available to low wage workers, an increase in the minimum wage will hurt small businesses. Do the math: Suppose you employ ten people, full time, at minimum wage. A two dollar increase will cost you about $40,000 a year. How would we react to a tax of the same size imposed on the same scrappy entrepreneurial grocer or clothing store owner?" ---Katherine Mangu-Ward