A small group of us met on April 1st to discuss the issue of a living wage. All were essentially in agreement that one who works full-time ought to be able to support oneself and one's dependents. We also agreed that ensuring that this was the case was an appropriate role for government, and that instituting a living wage would likely be one effective tool to do this. However, some also expressed some nervousness and uncertainty about the economic impact of a living wage, and we wondered how best to institute a living wage while safeguarding against unintended consequences. It was felt that - particularly in the case of a world-wide living wage, but also in the case of a national one - the amount constituting a "living wage" would have to vary from place to place, depending on differences in local economies and the local cost of living. It was also felt by most that a living wage would have to be instituted incrementally in order to prevent a sudden, significant increase in unemployment.
Our support of government action in this area, while acknowledging potential pitfalls, led us to another example of government action intended to impact the economy - government subsidies. What kind of government subsidies are currently in place, and how do they impact both America and the rest of the world? Join us next time as we examine this topic in greater detail.
