I briefly overheard an impassioned case for increasing the minimum wage on some morning news program today. The reason? “Rent is too high to pay on $7.25 an hour”
Indeed, rent is high in this city. I can’t imagine earning the min and making ends meet, certainly not in Manhattan, and certainly not in a nice neighborhood without a bunch of roommates.
High house prices are much a product of regulation designed to limit urban development. Incumbent house-owners lobby to enhance zoning laws and other regulations that stifle development to constrict supply. Now why would you want to constrict supply of something you own?
So the price goes up.
It’s policies that favor the rich that supply the strongest case for increasing the minimum wage.