The cruelest law of all is the minimum wage. It is the most basic law of economics: if the price rises on a good (ceteris paribus, of course), then less of it will be purchased. Labor is no exception. When you raise the price (i.e., the minimum wage in this case), less labor at the low end of the skill scale will be employed. For a thorough discussion, see here. [6]
In a time when our economy is struggling and teenage unemployment is through the roof (especially minorities), raising the minimum wage is the worst thing that can be done. This price control hurts the most vulnerable in society and those most in need of jobs. Yet the political class knows they can depend upon the ignorance and stupidity of the voting public. By appearing to be compassionate, they gain favor and votes. This move is not compassionate, it is harmful and destructive. There is nothing more harmful to low-skilled workers than raising the minimum wage. If it benefits politicians they don’t care what havoc and destruction they impose so long as enough of the people can be fooled.
The reality is that Government schooling produced this situation of zero to low skills. Now government rides to the rescue by making laws that make it illegal for their damaged output to be hired. No employer will hire an employee that costs him money. Unless the employee has a reasonable chance of contributing more than he costs, he has no hope of escaping unemployment. Unskilled workers are capable of doing productive work, but not at a beginning wage set too high by politicians looking out only for themselves. If the minimum wage is so good, why not raise it to $20.00 per hour or $50.00? Wouldn’t that erase poverty?
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What ever. Everything is going up but the pay check. And people actually believe that lifting minimum wage will only jack up more prices. Wrong.the prices have been lifting for years with out an increase in wages. Hell with all the illegals workings of the books for next to nothing the increase should be up to $12 an hour.
ReplyDeleteThis author gets it. Obama and his democrat toadies don't care what is best for the country - their concern is what actions will get them votes. Raising minimum wage thru the roof sounds good to the illiterate and the uninformed - the basic Obama voter. It sounds like 'he cares'. However, it will only lead to further unemployment, increased union wages (another bonus for the democrats), and higher consumer prices.
ReplyDeleteIts too complicated for a discussion here, but I might remind 12:17 that consumer prices are already high and going higher EVERY DAY. Food, gas, energy, housing, you name it. But pay scales have remained stagnant for YEARS. And the rationalization for keeping wages low is what, again? And while you're at that explanation, go ahead and talk about the productivity of the American worker. And the percentage of millionaires today compared with 10 years ago. And the economic status of full time workers who still fall below POVERTY guidelines. Who are THEN subsidized --- SUBSIDIZED! - by the rest of the American taxpayers. Not the businesses who whine "I can't afford it!", while they upgrade their Benz, but the American taxpayer. Should taxpayers be forced to subsidize Wal-Mart workers so that the Walton family can buy another 50,000 acres in the California mountains? The sad truth is that some people will never be more than laborers and such. Never. But THAT doesn't mean we get to abuse them like slaves at the pyramids.
ReplyDeletePrivatize or otherwise eliminate government.
ReplyDeleteOMG 1:09 someone besides me gets it. Thank you. I have been making this argument for years on deaf ears. I could not have said it any better. There IS some intelligent life in smallsbury! I took a 30% pay cut in 2010 just to keep my job, but they didnt cut my work load, infact I am doing more for less while my employer lines his pockets. The joke and the myth is most employers tout that it is "cheaper" to live here, so they pay you less, meaning you are living on the edge of poverty while I am hearing him tell stories of great vacations, new cars, new toys. My vacation consists of sitting at home for a week. B/C I dont make enough to actually go anywhere. It's just another excuse for the rich to keep getting richer off our backs.
ReplyDelete"but I might remind 12:17 that consumer prices are already high and going higher EVERY DAY."
ReplyDeleteAnd might I remind 1:09 that multiple factors influence the economy simultaneously. THAT's THE POINT (my keyboard has upper case, too!). The economy is already stressed. Raising the min wage will only exacerbate the situation and, ultimately, do no good for anyone.
Raising the minimum wage causes more unemployment and just rewards unions.
ReplyDeleteThere should be no minimum wage. People should be able to earn what they are worth.
Like I said, it's complicated...
ReplyDeleteName a job that could be eliminated because of an increase to $9/hour. I mean how would it get done? By some making $12/hour?
ReplyDeleteFact is employers paying minimum wage are just plain cheapskates. They are abusing a system and their employees are getting benefits from other middle class tax payers.
It could actually help the economy. As these people will spend the extra. It could even help some employers who will find it easier to find good employees as their employees will be more likely to show up for the better wage.
I have a child care facility. We make nothing. Raising minimum wage will most definately hurt this business. Otherwise child care will become unaffordable to compensate for the payroll increase, tax increase, etc..
ReplyDeleteUm, 6:11, you said a mouthful. "It could even help some employers who will find it easier to find good employees as their employees will be more likely to show up for the better wage."
ReplyDeleteIs that how an employer thinks? NO. If that employee's only incentive to show up is for a better wage, what is his incentive to do more work in order to earn his boss enough money to afford to pay him the higher wage?
There seems to be some "cart before the horse" in your ideology.
How about you work harder and earn your boss more money so he can offer you a raise, or hasn't that ever been tried before?
WOW.
The answer to the original question heading the article is VERY! reading half the comments here and realizing the mentality of about half our citizens. They do not understand basic economics or even basic ethics. Thank you 8:36 for saying it better than I probably just did. To the ones being ripped off by the boss, yes I was there in the past and eastern shore bosses with their Perdue mentality are the worst but believe me, socialism IS NOT THE ANSWER.
ReplyDelete