Wednesday, January 29, 2014

CARSON: Obama is wrong that raising minimum wage will fix income inequality

President Barack Obama holds up a bag of tortilla chips during a visit at a Costco store in Lanham, Md., Wednesday, Jan. 29, 2014, where he spoke about raising the minimum wage the morning after his State of the Union address.  (AP Photo/Charles Dharapak)
There has been much discussion about income inequality recently. President Obama seems to think that we can make significant progress in eliminating poverty by raising the minimum wage, as his State of the Union address highlighted.

Many hope that through a simple declaration, the poor can be elevated to a higher social status. Such people fail to realize that pay is associated with value — otherwise, we could just pay everybody $1 million a year and let everybody be rich.


In a capitalistic society, those individuals who produce the wherewithal to obtain income tend to be paid quite handsomely, while individuals who don’t generate significant income are paid accordingly.

As in any situation that involves human beings, there will be some abuses, but generally speaking, this kind of system works by incentivizing individuals to do the things necessary to enhance their value in the marketplace.

Many in the current administration and their sycophants in the news media are trying to persuade Americans that there is significant improvement in the general economy, while record numbers of people are enrolling in the food-stamp program and receiving various government subsidies.

Via: Washington Times

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