moonbattery.gif


« UN Peacekeepers Raping Children in Sudan | Main | AP Spins For Food Nazis »


January 3, 2007

Minimum Wage Snake Oil

Incoming Speaker of the House Nancy Pelosi has promised to "give Americans a raise" by hiking up the minimum wage from $5.15 to $7.25 over the next two years. Though this may benefit posturing politicians, it won't be much help to the rest of us.

James Sherk, a policy analyst with the Heritage Foundation, points out that only 2% of Americans actually earn only $5.15 per hour. Meddling with the free market by raising the minimum wage will cost some of them their jobs, because if it made economic sense to pay them more, the businesses employing them already would be.

Raising minimum wage will also increase competition for low-skilled jobs by encouraging teenagers to drop out of school. Despite the propaganda, minimum wage workers rarely support families. They tend to be teenagers or college students. Minimum wage hikes do not reduce poverty rates.

They don't reduce illegal immigration rates either; the higher the minimum wage, the more tempting it is to pay an illegal alien under the table instead of employing an American citizen.

But none of this will stop the media from echoing Pelosi as she implies that our sugar mommy government is giving us all free money.

Nancy-Pelosi.jpg
Free snake oil for everyone.

Posted by Van Helsing at January 3, 2007 2:38 PM

Comments

Who says you can't buy a presidency?

Republican lawmakers sell their votes to corporate interests.

Democratic voters sell their votes to Democratic lawmakers.

Meanwhile the public interest remains under-served and under-represented.

...and the Dem trolls are always up their high-horses. What a joke.

Posted by: Farmer John at January 3, 2007 4:10 PM

ummmmmmm...question?

where's all this free money coming from? dayam i hate ending a question with a preposition~!

Posted by: nanc at January 3, 2007 7:15 PM

...from da pockets of us thats got, to da pockets of Dems that ain't got.

Posted by: Farmer John at January 3, 2007 7:23 PM

As I always say, let the states do it. Missouri just did it, though I voted against it. It was actually on a statewide ballot, which I thought was odd.

In which city does $7.25/hour go farther, Berkeley, CA or Fargo, ND?

That's precisely the reason it belongs with the states. Further, many cities and states already set a minimum wage higher than the federal one.

Posted by: Steve at January 3, 2007 7:49 PM

But, what do I know, I'm not a blathering, idiotic moonbat.

Posted by: Steve at January 3, 2007 7:51 PM

Ooh, ooh, caption time! Where's V the K?

"We're going to raise your taxes this much."

"We love your tax money this much."

There's probably a Kennedy joke in there.

Posted by: Steve at January 3, 2007 8:01 PM


Whenever the minimum wages go up and there are predictable consequences;

The cost of living for people in the lower wage brackets immediately goes up at least as much.

There is a push to raise all wages the equivalent percentage. I know as for years I worked in the unions shops that immediately made such demands and usually got them and everyone else of course wants their raise too.

Then the higher end goods and services increase in cost to match or better the found money in the middle and upper wage earner’s pockets.

The ones that take it in the neck are the people, perhaps in struggling industries or companies that do not get in on the wage inflation but do get in on the cost of living inflation.

The net result of higher minimum wages is that some people always drop lower in the wage scale as it all stabilizes again.

larry

Posted by: larry at January 4, 2007 4:48 AM

They set a "living wage" in San Francisco a few years back. The results weren't pretty. For instance - the price of fast food went up about 20% overnight, so folks started taking sack lunches to work. As fast food business dropped, workers were layed off. So rather than two kids making $6.50 each, only one kid was making $8.50. Not only did unemployment go up, businesses that catered to kids (record stores, teen fashions, etc.) took a HUGE hit because all told, fewer kids were making spending money.

Silly liberals just don't get it.

Posted by: jimbo at January 4, 2007 6:34 AM

but jimbo, the liberals got to feel good about themselves. That's all they care about. It doesn't matter that they inflect misery on others.

Take Vietnam for example. The liberals got to gloat about ending a war. The genocide that followed US withdrawal didn't matter. It's all about left-wing self-esteem.

That said, I don't think the minimum wage is a hill conservatives want to die on. The libs were successful in passing minimum wage referenda in November, so it's obviously an issue with broad public support. We should probably keep our powder dry for other, more important battles.

Posted by: V the K at January 4, 2007 10:23 AM

People dependent on the federal government to give them a raise sounds a lot like socialism.

Where do they think this money will come from? Employers will end up raising prices to pay for it.

This is not about economics, it's about politics.

Posted by: NudeGayWhalesForJesus at January 4, 2007 1:03 PM

Related to NGWFJ's point, in the news this morning, an out-of-town union is trying to organize workers in the city near where I live.

Shouldn't taxpayers be the ones to decide whether or not city employees get to be unionized? I mean, if the union succeeds, we all know it will mean more pay for workers and lousier service for taxpayers, financed by higher taxes.

Posted by: V the K at January 4, 2007 1:24 PM

Thanks for the humor, Steve.

All right class, settle down. It's time for another of Professor Harn's history lessons.
A long time ago the owners of the nations' industries set the prices and the wages and unions were formed to demand safe working conditions, fair pay and not getting SHOT for complaining about the high prices at the company store. One day something called "The Great Depression" came along and men were desperate to feed their families. They would work for half what they made before, they would work for a basket of fruit to sell or EAT, they worked for tips, they PAID the company to hire them.
Into this economic disaster was introduced "The New Deal" which included a little thing called "minimum wage". The minimum wage was ment as a garentee for workers to GET PAID. But as time went on, it became a carrot for polotitions to dangle in front of voters and it comes up in EVERY ELECTION YEAR.

Here's a crazy idea: let's hear a plan to LOWER PRICES! Say Liberals, you think you're smarter than everybody else, let's hear YOUR plan. I mean, since you talk so high and mighty, you MUST have some sort of solution for inflation.

Posted by: KHarn at January 4, 2007 4:22 PM

dem damn dems damned dhimmiwittedcrat delusions!

Posted by: nanc at January 4, 2007 9:14 PM

"Raising minimum wage will also increase competition for low-skilled jobs by encouraging teenagers to drop out of school."

bullshit.
kids arn't gonna drop out of school to work at mcdonalds.
everyone knows construction is the place to go when you drop out.

Posted by: josie at January 8, 2007 5:36 AM