by Ken Schoolland
Grassroot Institute of Hawaii
February 25, 2014
Federal and state politicians are eager to raise the minimum legal wage—again. They have raised the minimum legal wage many times, but they complain that it is never enough because the prices of food, clothing, and shelter keep going up faster than wages. Yet, a general rise in prices is caused by government monetary policy. As it takes more and more dollars to buy the same goods, the value of wages, savings, and pensions falls. Politicians could tell the Federal Reserve Gang to stop printing money, but they don’t because printing more money is useful to the spending plans of politicians. State politicians are also responsible for rising prices. They don’t print money, yet they raise prices by raising taxes on nearly everything. As L. Neil Smith puts it, “The government is a disease masquerading as its own cure.”

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