Minimum consistency, again

posted by
March 12, 2013
Cafe Hayek
by Don Boudreaux  
Posted in Commentary

"Mr. Krueger argues (along with some other economists) that a modest hike in the minimum wage causes no increase in unemployment .... Krueger’s presumption is that firms operate with enough ‘slack’ to permit them to absorb minor hikes in their wage bill without changing their procedures. But if private firms can easily and without any negative effects adjust to a small, government-imposed tightening of their budgets, why cannot government agencies do the same?" (03/11/13)

http://cafehayek.com/2013/03/minimum-consistency-2.html  

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