I’ve had a thought for a while about the relationship between economic slowdowns as well as recessions and the increases in Federal Minimum Wage. I’ve never read an article on them, but it seems to me that there must be a relationship. I’ve done a little bit of research and, while, of course, one can not show a conclusive relationship, nevertheless, the findings are interesting. Continue reading
With everyone concerned about a recession (which we are not in), some in Washington have started talking about what the government should do to help strength the economy. Brian M. Riedl wrote a great article in today’s Washington Times entitled Tax cuts vs. tax rebates.
“With slower economic growth raising fears of a recession, Washington is abuzz with talk of economic stimulus plans.
President Bush may offer a stimulus package; congressional leaders are discussing a proposal centered on tax rebates. Tax rebates don’t stimulate the economy. Cutting tax rates does.
To explain, let’s take a step back. By definition, an economy grows when it produces more goods and services than it did the year before. In 2007, Americans produced $13 trillion worth of goods and services, up 3 percent over 2006.”