Discussions about "raising the minimum wage" are rather pointless because they all start with the unsupportable premise that there is a rational basis for having a government-mandated minimum wage. But there is none.
It is a politician's wet dream but makes no sense in rational economic terms. It allows politicians to say, "Look what I'm doing for the POOR and DOWNTRODDEN!" while it costs him nothing to do it, and probably does more to harm the "poor and downtrodden" than anything else. Indeed, the higher the minimum wage, the more harm comes to people with no education, no experience, and no skills - not surprisingly the group most deserving of the title of "poor and downtrodden"
How many HS dropouts are going to be hired by this burger joint at $15? Why the fuck would they hire a gangbanger when they have a stack of applications from people with MFA degrees? If the MW were $15 per hour, what would be the unemployment rate in Detroit for minority youth?
100%? Certainly close to it.
I offer one observation and one question:
Question: Let's say I have a company and would like something done that has an economic value to me of, say, $4/hour. Say it's sweeping the sidewalk in front of my grocery store. It adds nothing to my bottom line but is a nice gesture and keeps the neighborhood looking tidy. And let us say further that there are local high school kids who are looking for something to do after school, who are willing to sweep my sidewalks for $4/hr.
One of the "rights" alluded to in the Ninth Amendment of the Constitution* is the "right of contract." That is, the right of people to make enforceable contractual commitments with each other, without interference from the Federal Government.
So my question is this: On what basis does the United States Federal Government PROHIBIT me and one of those high school kids from entering into a CONTRACT that both of us finds desirable? And who benefits from this PROHIBITION? It's not worth 7.25/hr to me or $10/hr. It's just something I would find desirable (not necessary). At those rates, I'll just not do it, or I'll send out a clerk to do it once in a while. Who benefits from the existence of the Minimum Wage in this case?
And my observation is this: For every person employed in this country, you MUST assume that that employment is THE BEST OPTION THE PERSON HAS for selling his or her time and effort for financial gain. When it comes to their own best financial interest, you must assume that people behave rationally. If the SEIU thinks that Suzy Tenderloin is being exploited by BarfBurgers, Inc., what fucking business is it of theirs? It's the best job she has available to her. Their interference could very well get Suzy fired for insubordination, or have her hours cut as the hourly rates go up, or to lose her job entirely, as BarfBurger has to cut staff in reaction to the higher rates. The SEIU refuses to acknowledge one very vital point: The Employer is NOT GOING TO EAT THE COST of higher rates! The amount that he can't pass on to his customers is going to be eliminated through reduction in compensated hours, one way or another. Net gain: ZERO!
If there were no minimum wage (or if the Federal Government were forced to adhere to the Constitution and ignore activity that is not part of "interstate commerce"), compensation would be entirely set by market conditions, and people would be paid according to their economic value. This radical concept applies to more than a hundred million people in the U.S. right now - those of us who are gainfully employed in the private sector and making more than MW. What a concept!
Without a MW, employers would have to GIVE SOME THOUGHT to how much a job is worth and how much they have to pay for the level of performance that they need. People would have to GIVE SOME THOUGHT to how much they were willing to work for, and not just accept skut wages because "everybody here starts at minimum wage."
Our Beloved President and his minions claim to be deeply concerned about the problem of unemployment among minority yoot. The BEST thing they could do for them would be to eliminate the minimum wage.
I have spoken.
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* Ninth Amendment: "The enumeration in the Constitution, of certain rights, shall not be construed to deny or disparage others retained by the people."
