Since the State of the Union address, the minimum wage has heated up again as a political issue. You can read my previous posts on the topic by clicking here. (Unfortunately, some of the links in these old posts are now dead.)
There is one question I would like to see some reporter ask Alan Krueger, the president's chief economist: How did they decide that $9 per hour is the right level? Why not $10 or $12 or $15 or $20? Presumably, the president's economic team must believe that the adverse employment effects become sufficiently large at some point that further increases are undesirable. But what calculations led them to decide that $9 strikes the right balance?
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