minimum wage

The Minimum Wage and Stupid National Public Radio

Jacques Delacroix Current Events, Politics , , , ,

Two things on my mind this Bastille Day 2012. The first is who is more stupid, French leftists or American liberals? I have life-long knowledge of both tribes. At this point, I think French leftists are smarter but more dishonest that their American cousins. In general, there is a certain artlessness about deception in ordinary Americans. The French are often artful; can’t take that away from them.

The second matter on my mind is that constant struggle to avoid using nasty epithets in connection with liberals’ statements. One that keeps coming up is the simple “stupid.” I scrupulously avoid the word on this blog and in my other writings. Yet, there are informational events that sort of self-label with no escape possible. Here is one, below.

It’s shortly after 5 pm on Sunday July 10th 2012. I am in my pick-up truck listening to National Public Radio. (I know the combination is jarring.) There an in-depth discussion of the minimum wage. That’s always interesting. Conservatives make an apparently impeccable theoretical argument against: Minimum wage laws create unemployment among the most vulnerable categories of the work force. Liberals sometimes make sophisticated arguments for the minimum wage. Behind those, however, I always find the usual combination of mindless jeremiads of “sad” and “unfair.” But, it seems to me that the empirical evidence supporting the conservative position against minimum wages is on the thin side. Listening to a relaxed radio show from the Left could be a good way to find out more. Continue reading →

Bad Idea of the Year: Raise the Minimum Wage

Warren Gibson Current Events, Economics , , , , , ,

Who can live on $8 per hour these days? Surely, in a country as rich as ours, no one who is willing and able to work should suffer the indignity of such paltry wages. The solution is simple and obvious: pass a law. If you work, you get at least $10 per hour, period.  Anything less is downright indecent. And so we have a ballot initiative to make this happen in San Jose, California.

It’s anything but simple and obvious if we stop and look and think about what’s happening in the real world. Today I went to a small family-owned sandwich shop near my house. They are very popular and so four young workers, probably students from the nearby college, were jammed in the tiny shop with the two owners. The sandwiches are great but I also enjoy watching them hustle at lunch time. I’m quite certain the helpers were all earning minimum wage but had other sources of income or support. Far more important than their wages, which will quickly be spent, is the work experience that will last them a lifetime – and the confidence that comes from knowing they are earning their money by doing a job in the very best way they can.

The McDonald’s near me employs a few senior citizens, likely at or near minimum wage. They almost certainly have other income. Just being active and involved in productive activity gives their lives meaning and may well enhance their health and longevity.

The sandwich shop operates on thin margins which are being squeezed by rising food prices. If they had to pay their young helpers $2 more per hour they would probably close. But the nearby Safeway store, which has a sandwich bar, would very likely absorb part of the wage increase and pass the rest on to customers, which would be easier to do with their family-owned competitor knocked out. Continue reading →