Quantum Windbag
Gold Member
- May 9, 2010
- 58,308
- 5,100
Most of us older folks remember when ushers would guide us to seats in theaters, or how gas stations attendants would wash windows and check under the hood. Most people don't think about why we don't have things like that anymore, even though everyone complains about how customer service is no longer a priority with companies we do business with. If anyone actually thinks about it, they will understand why this is happening, but most people won't get it even after it is explained to them.
The Minimum Wage Harms the Most Vulnerable - Reason.com
Crocodile tears are flowing again for low-income people. In his State of the Union address, President Obama proposed raising the minimum wage from $7.25 to $9 an hour. A debate is shaping up between those who support the proposal and those who favor keeping the wage where it is today. But there are good groundsfor the sake of the poorto repeal the minimum wage altogether.
Wages are not set by fiat, even in the U.S. economy, which is severely distorted by government privileges. Wages, rather, are determined by supply and demand. If the price of unskilled labor rises, why wouldnt employers buy less? No employer could long pay a worker more than the value he produced for the firm. Thats why economic theory and empirical observation tell us that an enforced minimum wage destroys jobs, degrades the quality of other jobs, and prevents new jobs from being created.
The victims are the most vulnerable people in society: the unskilled. For the most part, these are young people (many from the middle class) without work experience. Few people over 24 make the minimum wage, and those who do usually move up before long. Young people desperately need that first job to learn skills and work habits, and of course income, but progressive politicians, whether they know it or not, favor policies that destroy entry-level jobs. Remember, the minimum-wage law doesnt create employment; it forbids jobs that pay too little.
Advocates of the minimum wage ought to explain why they believe competition among employers hasnt already bid up the wages of unskilled workers to reflect their productivity. How can anyone know that a $9 minimum wont throw people out of work or make low-skilled jobs more onerous? No one can know this because only the market process can generate and disclose such information. Nevertheless, progressives are willing to gamble with the lives of people who are vulnerable enough as it is.
The Minimum Wage Harms the Most Vulnerable - Reason.com