The Illusions of The Minimum Wage

[Bonnie]

March 6, 2005
The Illusions of the Minimum Wage
By Steve Chapman

Asking Democrats if they favor an increase in the minimum wage is like asking Martha Stewart if she'd mind sharing some decorating ideas. There are few things they'd rather do, and Ted Kennedy thinks it is high time.

The Massachusetts Democrat is offering a measure that would boost the wage floor from $5.15 to $7.25 an hour over the next two years. He noted that it has not been lifted in eight years, during which time senators have gotten seven pay raises. "If the Senate is serious about an anti-poverty agenda," he said, "let's start by raising the minimum wage." Republicans, meanwhile, might accept an increase of $1.10, as proposed by Sen. Rick Santorum of Pennsylvania.

It may seem like an inescapable truth that if you increase the amount employers pay their lowest-wage workers, you will have fewer poor people. Money, after all, is what they lack, and a higher minimum wage means more money to those in the worst-paying jobs.

more.........http://www.realclearpolitics.com/Commentary/com-3_6_05_SC.html

 

[SmarterThanYou]

people just don't get it.

 

[Bonnie]

people just don't get it.

I suppose because it's just one of those issues that never gets scrutiny beyond the knee jerk reaction it illicits.

 

[SmarterThanYou]

if BOTH parties would stop screwing up a good free market, this wouldn't even need to be thought of.

 

[cptpwichita]

if BOTH parties would stop screwing up a good free market, this wouldn't even need to be thought of.

agreed!

 

[Huckleburry]

That artice is really deciving. It does not take into account changes in the global market place. Nor does it consider the industries of PA and NJ or whose economy was more supceptible to outsourcing. Nor does it take into account diffences in state fiscal policy that could have drastic effects on local low wage earners. Essentially it assumed the two economies to be exactly the same (which they are not) and then compared them in a manner that would yield the desired results. Now THAT'S scholarship.

 

[cptpwichita]

Why not make u.s. companies more competitive in the international marketplace by reforming the tax code.why not make u.s. companies more competitive by removing the minimum wage.why not make companies more competitive by de-regulation.why not reduce the tax rate by controlling spending.why not increase the education levels here at home by privatization and vouchers.why not remove restrictions to trade overseas and develop new markets for american products.

 

[Huckleburry]

We are one of the most open economies on the planet. Regulations exist to make sure that we do not have ten Enrons and constant bank closings. I agree with the Voucher system. whether the minum wage decreases or increases employment has yet to be determined. The tax code is in need of reform but it would most likely mean more not less for US companies. I agree on the school voucher and privitization though.
I am all for the free market economy. But it does not always work. A quick jaunt down economic memory lane will reveal some very painfull times that were a direct result of too much faith in the market. I am captalist through and through. However Capatalism is only the vehicle it needs a captain to stay on course.
HUCK

 

[rtwngAvngr]

We are one of the most open economies on the planet. Regulations exist to make sure that we do not have ten Enrons and constant bank closings. I agree with the Voucher system. whether the minum wage decreases or increases employment has yet to be determined. The tax code is in need of reform but it would most likely mean more not less for US companies. I agree on the school voucher and privitization though.
I am all for the free market economy. But it does not always work. A quick jaunt down economic memory lane will reveal some very painfull times that were a direct result of too much faith in the market. I am captalist through and through. However Capatalism is only the vehicle it needs a captain to stay on course.
HUCK

you are not for free markets. You are a new world order price fixing style economist. That's why you refuse to admit how individual business men bring more efficiency and value to society through competition with each other. Quit lying. Tell us again about your land redistribution schemes for south america. Do you think this cockeyed solution displays a love of free markets?

And I think there should be a minimum wage, but it need not be enough to have a house, car, family of four. The LIVABLE wage concept.

 

[Bonnie]

rtwngAvngr

And I think there should be a minimum wage, but it need not be enough to have a house, car, family of four. The LIVABLE wage concept.

Well why not! If we are going to keep raising minimum wage why not just give everyone working at Burger King enough to have a house, car, maybe even a nice boat or jacuzzi............Sarcasm

Minimum wage is a starting salary for those just getting into the workplace. Everyone pays their dues, works their way up the ladder. Yes there probably should be a minimum wage but it should be commensurate with what a free market allows.

You run the risk of putting smaller businesses out of business, and that =less jobs.

 

[rtwngAvngr]

rtwngAvngr


Well why not! If we are going to keep raising minimum wage why not just give everyone working at Burger King enough to have a house, car, maybe even a nice boat or jacuzzi............Sarcasm

Minimum wage is a starting salary for those just getting into the workplace. Everyone pays their dues, works their way up the ladder. Yes there probably should be a minimum wage but it should be commensurate with what a free market allows.

You run the risk of putting smaller businesses out of business, and that =less jobs.

Too true. I realize now my sentence was a fragment "The whole livable wage concept." I'm saying I'm against it.

 

[Bonnie]

Too true. I realize now my sentence was a fragment "The whole livable wage concept." I'm saying I'm against it.

I know Never doubted you

 

[MJDuncan1982]

if BOTH parties would stop screwing up a good free market, this wouldn't even need to be thought of.

The free market is not the only concern that our society has. Unfettered capitalism is bad - just as any principle is if not checked. I suppose you'd prefer to go back to an 80 hour workweek for children making 50 cents a day.

There's a good medium for the minimum wage - probably around what it reasonably takes to live at the lowest level of the economy.

Not sure if this is an inflation adjustment but it must always be adjusted accordingly.

 

[5stringJeff]

The free market is not the only concern that our society has. Unfettered capitalism is bad - just as any principle is if not checked. I suppose you'd prefer to go back to an 80 hour workweek for children making 50 cents a day.

There's a good medium for the minimum wage - probably around what it reasonably takes to live at the lowest level of the economy.

Not sure if this is an inflation adjustment but it must always be adjusted accordingly.

The problem with your strawman argument is that no employer is going to go back to those wages. Wages may fall slightly, but that would only signify that wages were too high to begin with. However, as businesses prosper more (due to decreased wages), they would be able to hire more people. They would also be able to lower prices, making goods more affordable for people working at reduced wages.

 

[MJDuncan1982]

The problem with your strawman argument is that no employer is going to go back to those wages. Wages may fall slightly, but that would only signify that wages were too high to begin with. However, as businesses prosper more (due to decreased wages), they would be able to hire more people. They would also be able to lower prices, making goods more affordable for people working at reduced wages.

How do you know that? It happened here in the past and is the status quo in many nations around the world.

The aim of capitalism is money. There are other aims that society must look to and capitalism has shown its ugly side already.

 

[5stringJeff]

How do you know that? It happened here in the past and is the status quo in many nations around the world.

The aim of capitalism is money. There are other aims that society must look to and capitalism has shown its ugly side already.

How do I know that? Because labor also follows the law of supply and demand. At a wage (price) of $0.80/hr, the supply of labor, even for unskilled work, is almost zero - in other words, no one will work for $0.80/hr. At $5-7/hr, the current minimum wage (varies by state - the commies in WA have minimum wage pegged to inflation, and it's $7.50/hr here), labor is plentiful, but is too expensive for many small businesses to profitably utilize labor.

 

[MJDuncan1982]

How do I know that? Because labor also follows the law of supply and demand. At a wage (price) of $0.80/hr, the supply of labor, even for unskilled work, is almost zero - in other words, no one will work for $0.80/hr. At $5-7/hr, the current minimum wage (varies by state - the commies in WA have minimum wage pegged to inflation, and it's $7.50/hr here), labor is plentiful, but is too expensive for many small businesses to profitably utilize labor.

The supply of labor is not almost zero. If a family needs money - it will work for what it can get. People do in fact work for almost nothing, just not here because we don't allow it.

 

[Working Man]

March 6, 2005
The Illusions of the Minimum Wage
By Steve Chapman

Asking Democrats if they favor an increase in the minimum wage is like asking Martha Stewart if she'd mind sharing some decorating ideas. There are few things they'd rather do, and Ted Kennedy thinks it is high time.

The Massachusetts Democrat is offering,,, bla bla bla.... Let's put things in perpesctive. What did you expect from that state? The dopes up there are known for voting for losers. (that seem to keep winning elections)

The guy will for ever be known as that Red Nose Drunk from Massa car chuse itz. The dude who couldn't see good enough to avoid wiping out his car, killing his girlfriend (and probably his kid in her womb),,, but was able to swim fridgid salt water in the middle of winter, and eventualy find shelter and safety.. That guy, who likes to spend other peoples money does think that minimum wage is too low.. I heard him say that he "caunt" understand why the republicans are some stingy....

The brothers of Boston have also seen fit to elect John Kerry as a senator too, a poor working stiff who is married to one of the richest people on the earth (at least from my poor ass point of view) Why don't Kennedy and Kerry donate their salaries and benefits to the poor... INstead of paying for their salaries, since they are both altruistic, send their checks (and equivilent medical premiums) to their local soup kitchen in Mass. Maybe we can get Hillary to do the same as she is of the same ilk. Send her check to the Bronx, or to Harlem and feed/clothe/medicate the poor in their adoptive communities.

We all know what will happen when the minimum wage is increased, there will be more foreigners selling milk and cigars at the local 7-11.. The people who need the jobs most, the ones who need the entry level working skills, will lose another opportunity and still be left in the cold.

Instead of raising the minimum wage, the dipsticks in Washington DC should figure out how to get more companies to come to their respective home communities. I would suggest that liberals learn to appreciate corporations and not try to tax the life out of job makers/carreer starters. (I.E. US based and operating Manufacturing, testing, design type companies)

PS. I AIN'T ROOTIN FOR THE RED SOX THIS YEAR EITHER!!!!

 

[Nienna]

We mustn't forget that a big winner in the increased min wage is big government. The more you make, the more they take, and reroute your money into social programs designed to keep the little man dependent on big government. The whole min wage increase position IMHO is one of the biggest scams the government pulls on the working man.

 

[5stringJeff]

The supply of labor is not almost zero. If a family needs money - it will work for what it can get. People do in fact work for almost nothing, just not here because we don't allow it.

But again, if company A is hiring at $1.50/hr, and company B down the road is hiring at $3/hr, and Company C is hiring at $5/hr, where are you going to apply for work? Company C, obviously. So the companies will find the right equilibrium that will allow them to hire people at the right wage. This same principle is at work in all higher paying jobs already. Eliminating the minimum wage would just allow market forces to do the same thing with lower-end jobs.