Living Wage = Death to American Competition

Taken from a remarkably inaccurate site, the official Obama website, as a plan to combat poverty : Create a Living Wage: Obama will raise the minimum wage and index it to inflation to make sure that full-time workers can earn a living wage that allows them to raise their families and pay for basic needs such as food, transportation, and housing.

Looking beyond the fact that his plan is socialist in nature, I want to assess the impact it would have on American competition and the sad truth that it would not really benfit anyone.

If the Unites States were to implement a so-called "living wage" it would further chase away domestic and foriegn investment. Corporations are already faced with tremendous challenges in the U.S. and are willing to examine alternative solutions (ie outsourcing and moving operations) At some point, as the millions and millions continue to ring up, companies will leave. It will become impossible to compete with both freer market countries of the far east and the eastern bloc. Thus, labor market demand will fall increasing unemployment in posistions that are most easily outsourced, HURTING the people that Barack so dearly wants to help.