Captain Ed over at Captain’s Quarters has a great article about how a minimum wage increase this year by Dems will actually hurt the poor and cause inflation. An excerpt:

…They’re distorting a market for a short-term political benefit that will do nothing to raise the standard of living for the people they supposedly want to help. Arbitrarily raising the prices of services and goods in a marketplace causes inflation, not an increase in real value. They’re forcing consumers of labor to pay more for the same service, from which they will get no increased benefit — and that means that they will have to pass the costs along to the consumers of their goods and services, all through the distribution chain.

Whose money is getting given away? Yours and mine, and all 479,000 minimum-wage workers, that’s who. i can absorb the incremental loss of buying power, but the people at the bottom rungs cannot. If they’re lucky, all that will happen is that their buying power will remain the same as it was after a short period of adjustment. More likely, some of their jobs will get eliminated as businesses have to support the cost increase in some other fashion than price hikes.

Captain Ed is awesomely correct in his assessment of possible results driven by a minimum wage increase. It’s an all too familiar example of why government needs to get out of the economy and how Americans need to get informed about their government.

Related: Say “No!” To Dems’ Agenda