Pennsylvania’s Democratic Governor Ed Rendell signed legislationÃ‚Â Sunday that will raise the state’s minimum wage by $2 over the next two years, despite decades of economic research showing the negative effects of minimum wage laws.
In another display of economic irresponsibility,Ã‚Â potential 2008 Democratic presidential candidate John EdwardsÃ‚Â urged voters in Ohio to support a measure to increase that state’s minimum wage.Ã‚Â Edwards said this would be a catalyst for a wage raise at the federal level, a policy the Democrats have been pushing hard recently.Ã‚Â
Shedding some light on the real effects of a wage hike is Kevin Hassett, economic policy director at the American Enterprise Institute. In this article, heÃ‚Â presents sound, empiricalÃ‚Â analysis of the effect of minimum wage laws. PerhapsÃ‚Â Rendell, Edwards, and their colleaguesÃ‚Â should consider his wordsÃ‚Â before advocating such a policy.Ã‚Â