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Mandating unemployment.(Between The Lines)

The New American

| July 26, 2004 | Hoar, William P. | COPYRIGHT 2004 American Opinion Publishing, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

ITEM: Democratic presidential candidate John Kerry, reported the Chicago SunTimes for June 20, "proposed raising the federal minimum wage to $7 an hour by 2007, arguing that such an increase could boost the wages o['more than 15 million Americans"

Some worry that this would injure small businesses and job creation, but Kerry "rejected that argument;' according to the account. Kerry said: "Some people stand up and say, 'Oh gosh, don't raise the minimum wage, that's going to hurt us in this small business: But you know what? It never has."

BETWEEN THE LINES: Senator Kerry really does have a plan to reduce the number of "working poor": He wants more nonworking Americans who would be even poorer.

Higher unemployment, especially among entry-level workers (sometimes accompanied by reduced benefits or fewer hours of work), is inevitable when the government forces employers to increase their labor costs. This proposed hike would be the largest increase in entry-level wages ever, a 36 percent jump. Small employers and labor-intensive businesses, notes the National Restaurant Association, "are the most impacted by mandated entry-level wage increases...." Similarly, the National Federation of Independent Business refers to the "job-killing nature" of such mandates, saying the plan "is a 'pink ...

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