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Tag Archives: Minimum Wage


Raise minimum wage?

Obama Minimum Wage“It’s not true that life is one damn thing after another — it’s one damn thing over and over.” — Edna St. Vincent Millay

by George F. Will

Liberals’ love of recycling extends to their ideas, one of which illustrates the miniaturization of Barack Obama’s presidency. He fervently favors a minor measure that would have mostly small, mostly injurious effects on a small number of people. Nevertheless, raising the minimum hourly wage for the 23rd time since 1938, from today’s $7.25 to $10.10, is a nifty idea, if:

If government is good at setting prices. Government — subsidizer of Solyndra, operator of the ethanol program, creator of HealthCare.gov — uses minimum-wage laws to set the price for the labor of workers who are apt to add only small value to the economy. Continue reading


Minimum Wage Hammers Youth

youth unemploymentby Phil Kerpen

With Democrats cratering in the polls over their collapsing health care law, they are trying to pivot to the only part of their policy agenda that still enjoys broad public support: the minimum wage. But their advocacy and its popularity rest on the incorrect belief that a significant number of families live on the minimum wage. Instead, the primary impact would be to exacerbate a crisis of youth unemployment spurred largely by the last minimum wage increase.

A recent analysis by Ben Gitis of the American Action Forum found that just 1.9 percent of all wage and salary earners make the minimum wage or less. Just 0.3 percent of people in families with incomes below the poverty line make the minimum wage or less — and just 1.5 percent make less than $10.10, the level that Democrats have suggested for the next hike. Applying the most recent academic research, Gitis also found that such an increase would reduce employment by more than two million jobs. Continue reading


The Minimum Wage and Economic Reality

Obama Minimum Wageby Steve Chapman

If you offer people something that is too good to be true, you will always find takers. Ask Bernie Madoff. Or ask Barack Obama. He recently proposed an increase in the minimum wage — an idea that suits the natural predilections of many people enough to distract them from the unsentimental and unwelcome logic of economics.

One poll found that 63 percent of Americans favor raising the federal floor from the current $7.25 to $10.10, as the president recommends doing over two years. The reasons are obvious. Wages have stagnated, low-income Americans are getting a smaller share of national income and many working people are stuck in poverty despite their best efforts. A higher minimum wage is the obvious solution.

Obvious, but wrong. The proposal rests on the assumption that the government can decree the price of a commodity — in this case, labor — in defiance of the dictates of the market, without ill effects. But that view requires a heroic suspension of disbelief. Continue reading


Killing the American Dream with the Minimum Wage

Minimum WagePolitical crusades for raising the minimum wage are back again. Advocates of minimum wage laws often give themselves credit for being more “compassionate” towards “the poor.” But they seldom bother to check what are the actual consequences of such laws.

One of the simplest and most fundamental economic principles is that people tend to buy more when the price is lower and less when the price is higher. Yet advocates of minimum wage laws seem to think that the government can raise the price of labor without reducing the amount of labor that will be hired. Continue reading


The truth about the minimum wage

by Gordon Jones   Minimum Wage

In early 2011, the Senate Judiciary Committee held a hearing on the constitutionality of ObamaCare (né the Affordable Care Act of 2009). One would think that the time for such a hearing might be before passage of the act, but that is the way we do things around here, and besides, that is not the point of this column, which (as you can see from the title), is about the minimum wage.

The point derives from an exchange between Utah’s freshman (very fresh at the time, only a day or two old) Senator Mike Lee and Walter Dellinger, heavyweight lawyer, professor of constitutional law at Duke University, Assistant Solicitor General, presidential legal adviser, and then Acting Solicitor General in the Clinton Administration. In the course of the exchange, Lee wondered why, if the Interstate Commerce Clause would support a requirement for everyone to buy insurance, it wouldn’t support a requirement that every citizen buy (if not actually consume) three servings of leafy green vegetables every day. (That was in the heady days when supporters of ObamaCare still thought it was a regulation, before Chief Justice Roberts discovered that it was actually a tax.) Continue reading


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