Higher Minimum Wage Is Good Economics

The State of the Union did contain one surprise. President Obama’s call for an increase in the minimum wage from its present level of $7.25 per hour to $9 per hour was not among the proposals leaked to the press in advance of the speech. Republicans predictably rejected the call. But Obama and Democrats should press on. A higher minimum wage is good politics (polls generally show solid majorities support raising the minimum wage). And it’s better economics.