Can We Pay a Minimum Wage That Makes Everyone Rich?

Sept. 5 (Bloomberg) -- Last week, fast-food workers stageda one-day strike in 60 U.S. cities to demand a minimum wage of$15 an hour, more than double the current federal minimum of$7.25. The nationwide effort, “Fight for 15,” was organized bythe Service Employees International Union.

I feel bad for those who are relegated to a minimum-wagejob. I feel worse for those who want a minimum-wage job as asteppingstone to something better and would be denied thatopportunity by the imposition of a higher wage floor. A higherwage is great for the workers who keep their jobs; it isn’t sogreat for those who wouldn’t get hired because McDonald’s Corp.starts asking its existing workforce to do a bit more. With ahigher minimum wage, the cost of automating certain taskssuddenly becomes more affordable.