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The Minimum Wage Harms the Most Vulnerable
#1
I agree...

link-
http://fff.org/explore-freedom/article/t...ulnerable/

small quote:

Quote: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 grounds — for the sake of the poor — to 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 wouldn’t employers buy less? No employer could long pay a worker more than the value he produced for the firm. That’s 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 doesn’t create employment; it forbids jobs that pay too little.

Advocates of the minimum wage ought to explain why they believe competition among employers hasn’t already bid up the wages of unskilled workers to reflect their productivity. How can anyone know that a $9 minimum won’t 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.

Years ago, unskilled youth cleaned windshields and checked oil at gas stations, showed people to their seats in movie theaters, and bagged groceries. Many of those kinds of jobs disappeared as the minimum wage rose. Teenage unemployment, especially among blacks, has been a scandal ever since.

If the advocates of the minimum wage really cared about people with low skills and low incomes, they’d support elimination of the myriad government barriers to entrepreneurship and small-business formation, which keep people down. These include occupational licensing, restrictions on street peddling, and zoning, all of which make it tougher for people living on the edge to start up modest businesses and hire people in a similar predicament.

It’s no coincidence that these government barriers to self-employment exist: Established firms, which are always well-connected to the governing elite, dislike the free-wheeling competition that would grow out of a laissez-faire approach. It threatens their dominance.
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#2
Absolutely agree, 100%.
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#3
People always complain about the minimum wage and how the sky will fall if it is raised.

The sky never falls. Much ado about nothing, IMO.
A gun rack in a pick-up is not for holding guns. Its a place for women to hold on to. Smile
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#4
MrPeanut;83977 Wrote:People always complain about the minimum wage and how the sky will fall if it is raised.

The sky never falls. Much ado about nothing, IMO.

Yeah but our economy is at a breaking point....and raising minimum wage also raises prices, and raised prices combined with raised taxes is going to start hitting some people really hard. In the past, the economy was able to absorb a little more of that than it is now. At least IMO. I think the last significant raise was under Clinton....? But the economy was better at that time, but I may be wrong, since I was a teenager/college student at the time.
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#5
MrPeanut;83977 Wrote:People always complain about the minimum wage and how the sky will fall if it is raised.

The sky never falls. Much ado about nothing, IMO.

Very true! The theory is correct as is the principle but moving up to $ 9 per hour would make zero difference. $ 20 maybe but not $ 9.
Dave, proudly annoying members of pa2a.org since Sep 2012.
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#6
MrPeanut;83977 Wrote:People always complain about the minimum wage and how the sky will fall if it is raised.

The sky never falls. Much ado about nothing, IMO.

says someone who probably already works and has job skills, am I right?

Wink

ask the unskilled workers how the minimum wage is doing for them, especially blacks and minorities.

in fact, call up the subway shop in San Francisco and ask them if they're still selling the $5 foot long due to the very high minimum wage in the city.

Dave;83982 Wrote:
MrPeanut;83977 Wrote:People always complain about the minimum wage and how the sky will fall if it is raised.

The sky never falls. Much ado about nothing, IMO.

Very true! The theory is correct as is the principle but moving up to $ 9 per hour would make zero difference. $ 20 maybe but not $ 9.

why not raise it to $30/hr then if it makes 'no difference'?

when you get say a 2 or 3% raise on your check and it comes out to literally cents per hour, does that make 'zero difference'?
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#7
Dave;83982 Wrote:
MrPeanut;83977 Wrote:People always complain about the minimum wage and how the sky will fall if it is raised.

The sky never falls. Much ado about nothing, IMO.

Very true! The theory is correct as is the principle but moving up to $ 9 per hour would make zero difference. $ 20 maybe but not $ 9.

$2/hour is $16/day. Times 100 employees for a smaller business is $1600/day extra for unskilled worker pay.

Customers pay for that in increased prices.

Not to mention, the smaller business has to also pay greater supply prices, since now THEIR suppliers also have to pay more per hour as well. So the small business has just now been hit twice, once with $1600/day extra costs, and again with higher supply costs.

Which means their goods get sold at a twice raised price, and now the public has once again less money in their pocket.
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#8
andrewjs18;83984 Wrote:why not raise it to $30/hr then if it makes 'no difference'?

when you get say a 2 or 3% raise on your check and it comes out to literally cents per hour, does that make 'zero difference'?

Please edit your post quick so nobody thinks you lost the ability to read and comprehend.
Dave, proudly annoying members of pa2a.org since Sep 2012.
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#9
RugerGirl;83988 Wrote:
Dave;83982 Wrote:Very true! The theory is correct as is the principle but moving up to $ 9 per hour would make zero difference. $ 20 maybe but not $ 9.

$2/hour is $16/day. Times 100 employees for a smaller business is $1600/day extra for unskilled worker pay.

Customers pay for that in increased prices.

Not to mention, the smaller business has to also pay greater supply prices, since now THEIR suppliers also have to pay more per hour as well. So the small business has just now been hit twice, once with $1600/day extra costs, and again with higher supply costs.

Which means their goods get sold at a twice raised price, and now the public has once again less money in their pocket.

good post.

let me add that if a business is not getting $2/hr in added value by these unskilled workers, they'll simply get rid of them and shift other tasks onto other skilled workers who make them money.
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#10
Dave;83990 Wrote:
andrewjs18;83984 Wrote:why not raise it to $30/hr then if it makes 'no difference'?

when you get say a 2 or 3% raise on your check and it comes out to literally cents per hour, does that make 'zero difference'?

Please edit your post quick so nobody thinks you lost the ability to read and comprehend.

$2/hr DOES make a difference. like I said, would you tell someone to NOT give you a 2-3% raise per year because it's only a few cents per hour? no, you wouldn't...
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