Kerrynomics

John Kerry, Massachusetts Senator and former Democratic Presidential Candidate, famous for voting against proposals just before he votes for them and insulting troops just before flattering them, now tries to demonstrates that he understand economics better than he holds on to his political views. He fails-before he succeeds (if he ever manages to do that...that is one flip-flop Kerry is unlikely to succeed with...).

Anyway, George Borjas here quotes him saying this:

"In order for America to remain truly competitive in a global economy, we must invest in our workforce to stimulate small business growth. Small businesses create two-thirds of all new jobs in this country, and the vast majority of them are paying their new workers higher than the minimum wage.

It's no secret that good wages result in increased productivity, ultimately improving a firm's bottom line and economic development in their community. In fact, the last time Congress raised the minimum wage, our country experienced the strongest economic growth in decades. We saw lower unemployment, lower poverty rates, and lower inflation.

Small businesses get it. By raising the minimum wage, we're creating a prosperous future for our small businesses, their workers and their families."

To which Borjas comment:

"(1) If a $5.85 minimum wage creates a more "prosperous future for our small businesses" than a $5.15 minimum wage, isn't it a little irresponsible to stop there? Let's go for the $10.00 minimum wage? Or a $15 one? Or...

(2) No matter how disappointed one is with the Bush administration, all it takes is a little googling of John Kerry's latest nonsense to appreciate that things could be worse."

Indeed. With regard to point number one, you could go further , asking P.J. O` Rourke's question: "And if minimum wage laws work, why fool around? Why not make it a thousand an hour?"