Mohamed El-Erian: The Real Tragedy of Persistent Unemployment - WSJ.com

LIVING WAGES, ETC.: Mohamed El-Erian: The Real Tragedy of Persistent Unemployment - WSJ.com: "- Sent using Google Toolbar"

Another problem is the attraction of Democrats in particular to the idea of the "living wage" (e.g. the increase in the minimum wage).

As seen in Europe and evidenced by unions in the US, there are many constraints and policies that artificially distort the cost of labor. Thus, a job that might exist if one could pay $10 an hour, won't exist when the cost to the employer is $20 and the net to the worker is $5.

It would be interesting if, in the name of transparency, all employers had to give their employees a statement showing what the cost of all government mandated programs and taxes (and union demands, where applicable) would be.

Since many people in business say these costs are some 400 - 500% of the listed pay of the employee, my guess is the average American worker would suddenly start to question the bane of government mandates on their pay and job opportunities.