The proposed big three bailout is a bad idea for many reasons.  The graph below, from economist Mark J. Perry’s blog Carpe Diem, is striking.  A bailout would mean all the people on the yellow bar to the far right would be forced to subsidize those on the blue bar to the far left of the graph.  Robin Hood in reverse.

A study by Dr. Michael J. Hicks for the Ball State University Bureau of Business Research finds what economic theory predicts - minimum wage hikes increase unemployment.

The study, released just today, begins with a summary of the findings on the impact of the Federal minimum wage increase enacted in July:

"Our analysis concludes that a 10 percent increase in the minimum wage would result in a roughly 0.19 percent increase in unemployment. Applied to the U.S. labor market in July, this results in a one-time decrease in employment of approximately 160,000 workers."

Who are those workers?  Likely those on the very bottom of the economic ladder.  Forcing employers to pay them more than thier productivity warrants eliminates an opportunity for them to enter the labor market and improve their value and skills.  It essentially cuts of the bottom rung of the economic ladder, letting those who are holding onto it fall.