Redux – the economics of the minimum wage – McMahon vs Blumenthal Senate race
Since Jim’s discussing the minimum wage this morning – and looking for callers to argue against his point of view on the topic – I figured I would provide a few links to past posts here on Radio Vice Online concerning the minimum wage.
You can click here to list all of the posts including the ‘minimum wage’ phrase, or click on the links below to take you directly to the posts.
- Confirmed? Raising minimum wage increases unemployment (Aug. 2008)
- Raising the minimum wage making things worse (Dec. 2008)
- Is the minimum wage increase helping? (Sept. 2009)
- The economics of the minimum wage (March 2010)
- Uncle Sam decides to help Samoa (June 2010)
Democrats simply have a perverted knowledge of economics. Class envy is not the way to drive the economic engine of the country. All that raising the minimum wage does is put teens out of work. If it weren't directly linked to many union's wage increases, they wouldn't give a tinker's damn about it.
I think the late great Jerome "Curly" Howard summed up the Democrat thought process very neatly: "I'm tryin' to think but nuthin's happening!"
I may be all wet on this, but we should be VERY careful with minimum wage.
As I recall, 'twas a time the reporters were saying that teens weren't willing to flip burgers for $8 bucks an hour. If that was true, they won't flip them for less. Especially if medically covered until 26 and the Gov't keeps extending unemployment benefits.
Small business MAY make the best use of a lower minimum wage. But big business will see a huge increase in profits. They will cap, or make adjustments downward on, employee pay (union or not). And most of us are not keeping up with inflation now !!
We have heard the term "floating all boats equally", but did any of us think that the water level would be LOWERED to make that happen?
And another thing…..
If the intent of this is to make the US as profitable as China or India, there is another way. Import tarrifs. If you cannot justify raising the existing ones, create another one. Let's say it is a
tarrif / penalty / tax/ fee/ gouge due to these countries not having tougher environmental standards – you know, Chinese dirty coal, etc.
In this way, the imported products price come up and more in line with ours. This makes buying American made an easier choice. This also makes the Dems feel good about protecting the environment. And aren't we all willing to pay just a little bit more to keep our planet clean?