Newly elected Senator Elizabeth Warren demonstrates why you should never listen to lawyers:
What if U.S. workers were paid more as the nation’s productivity increased?
If we had adopted that policy decades ago, the minimum wage would now be about $22 an hour, said Sen. Elizabeth Warren (D-Mass.) last week. Warren was speaking at a hearing held by the Senate’s Committee on Health, Education, Labor and Pensions.
Indexing the minimum wage to productivity? Brilliant!!! Now instead of 7.7% unemployment, we would have 15-20% unemployment!!! Because, you see, companies will either increase prices to raise revenues to the level where they can afford to pay $22 an hour, or companies will not hire someone unless their work results in revenues of $22 an hour for the company.
I don’t know a lot of workers who are productive enough to earn $22 an hour for their companies. And hey, why stop at $22 an hour? After all, if $22 an hour is good, then $110 an hour is 5 times as good!!! Hey, this economics stuff is easy!!!
Rather than jerk around with statistics, how about we point the finger at the real culprit, Senator? Here’s a hint:
If the Fed wasn’t inflating the money supply and destroying the value of the dollar, we wouldn’t need a higher minimum wage.