raise the minimum wage

[Dave Backus @ NYU]

Sometimes it's hard to tell real news from the Onion. Anyway, as a
test of your understanding of supply and demand, what's wrong with the
following?

"It's time to raise the minimum wage. … Raising the minimum wage would
not only help working families, it also would help power the economic
recovery. … Raising the minimum wage puts a little more money in
pockets of the lowest-paid workers, who have little choice but to
spend that additional income immediately, helping restore the consumer
spending that businesses need to grow. Preliminary estimates suggest
that restoring the minimum wage to $10 per hour by 2014 could generate
as many as 160,000 new jobs."

Extra credit question: Could we create more jobs if we raised the
minimum wage to $20? As always, show your work to get full credit.

Link from Stan Zin: http://www.cnn.com/2011/09/02/opinion/thompson-obama-minimum-wage/index.html