The Stupidity Of Raising The Minimum Wage


If there’s anything which is indicative of leftard stupidity and reality denying, it’s the issue of raising a minimum wage.

Each time this issue comes up, the leftards pretend this is something new and novel, and that it will …. do something.  What, is never clearly explained.

Consider the most recent proposal.  Some people want the minimum wage upped to $9.13 in the US, from $7.25.  What, exactly, is that suppose to do?  Fix something?  Here’s a question, will the cost of living go up or down if the wage is raised?  It will absolutely increase.  From the groceries that one buys to the rent one pays, all will, in general go up.

Another thing which will happen, because of the increase, is that more people will find themselves under the poverty line.  It’s a form of bringing more people to the lowest common denominator.

If, let’s say, McDonald’s is forced to pay it’s new employees $9.13/hr, will the people making $9/hr get a raise higher than $9.13?  Probably not.  What they’ll get is less of an increase than the people getting a raise from $7.25/hr.  That way, we can have more people making minimum wage, rather than less.

Here’s a tidbit, since our war on poverty in the 1960s, we’ve raised the minimum wage 16 times.  Other than running our cheap labor off shore, has there been any improvement in the amount of people in poverty?  I mean, have we decreased the amount of people in poverty?  No?  Then, why, after 16 times of doing this, does anyone believe this is a solution to anything?

No, it won’t be the end of the world, (for most of us), but, it will be a continuation of the constant pressuring of moving jobs off-shore, and making it more difficult for businesses.  It is also inflationary.  No one benefits from this, except for the very few, and the very short term.  And, then, they wind up right where they started to begin with.

Can someone tell me what is the worth of the service provided by a stock boy?  How much should they get paid?  How much should a cashier get paid?  $9.13/hr?  If $9.13 is good, why not $15/hr?  Why not $40?

Am I being ridiculous?  No, not really.  In 1991 the minimum wage was $4.25.  What if we had said that the minimum wage should have been $7.25 back then?  Would our poor be any better off, today?  Can anyone make that argument?  Or, what about in 2007?  Our minimum wage just a few short years ago was $5.85.  Are we so much better off today than then?  Is anyone?  I doubt it.

Can anyone bring a logical argument which demonstrates raising the minimum wage has actually helped a significant block of people or society in general?

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17 Responses to The Stupidity Of Raising The Minimum Wage

  1. philjourdan says:

    Yep – back in the 80s, I was tasked with coming up with the grading scale for implementing the new Minimum wage (it seemed a yearly task). And it was set to die out after a certain level. So someone making x+25, only got 20 cents. X=50, got 15, etc. So now instead of have a year long raise over a new hire, it was only a 6 month higher salary.

  2. leftinflagstaff says:

    That can’t be right. Next you’ll be telling us that government manipulation of the health insurance market will make prices go up.

  3. play nice says:

    some tasks, no matter how well they are done, no matter how long the person has been doing them, are only worth so much

  4. LLAP says:

    Thomas Sowell on the minimum wage law and unemployment among black youth (from 4:25 to about 7:30) – this is a gem:

  5. LLAP says:

    Here in Ontario (Canada), the minimum wage is $10.25 per hour. Now, Canada’s newest union wants it raised to $14.00 per hour. And that is just the start. They eventually want a “living wage” of $18 per hour!

  6. Bruce says:

    Minimum wage here in Oz is $16.37 per hour. US/AUD rate fluctuates, so at the moment its only about US$15/hr. A few months ago the exchange rate was the other way around and it would’ve been US$17/hr.

    The reason why our minimum wage is so high is that Australia is prosperous, and despite one of the highest immigration rates per capita in the world we have low unemployment and a need for more people.

    The best way to raise pay rates for ordinary workers is to have a prosperous economy. Then supply and demand causes pay rates to rise automatically.

    In America your President Obama is raping the economy so natural trajectory for low paid workers is for their wages to fall. If they can’t fall because of minimum wages they will lose their jobs instead. Economic gravity works like ordinary gravity.

    This is so simple its astounding to me they can’t seem to ever understand it.

    • HankH says:

      The reason why our minimum wage is so high is that Australia is prosperous, and despite one of the highest immigration rates per capita in the world we have low unemployment and a need for more people.

      What does the small business environment look like in Oz? I’m tired of the bull sh!t small business environment here and ready to consider a broader scope of options. Half of my extended family lives in Oz anyway (my grandfather went to America, his brother to Oz) and I’ve always been invited to family reunions in Oz. My brother went to one a few years back and was treated as, well, family.

      With all the new taxes, fees, regulatory conformance costs, reporting costs, an astronomical increase in health insurance, an economy that sucks and won’t get better under the current stupidity of this administration, and a government that thinks I owe more than I take in, I’m just about ready to pull the plug and move on if things don’t change after the 2014 elections.

      • suyts says:

        Wait, wait, wait ….. there’s a new study that says regulations don’t cost jobs, so, what’s the real reason you want to go to Oz?

        • HankH says:

          It’s an Obama study, right? Need I say more?

        • suyts says:

          LOL, Obama/leftard same/same.

        • HankH says:

          Exactly. It’s a manufactured propaganda piece. In short – the typical obfuscating lies of omission Obama has demonstrated a true talent for. Seriously, Obama would fail as a used care salesman because most people looking for a used car know enough to ask appropriate questions. The problem is Obama reads from script and couldn’t answer a relevant question because he’s a clueless self indulged self proclaimed community organizer (if only he wished) dolt. There’s nobody of any liberal importance asking questions so……

          SSDD – no reason for me to think the leopard changes its spots.

    • philjourdan says:

      we have low unemployment

      Low unemployment means the minimum wage is superfluous. Just look at North Dakota. While the “federal” minimum wage is still about $7.25, burger flippers are getting $11-12/hour.

      The late 90s in the US saw no rise in the unemployment. Yet precious few (and then only in distressed areas) paid that as they had to raise the rates just to get people to work.

      You can set the minimum wage to anything you want, but all that does is impoverish more people if the unemployment rate is not low. You cannot circumvent the law of Supply and Demand.

      • cdquarles says:

        Exactly. The minimum wage is, in a free market, what the seller of labor can get the buyer of labor to come to a mutually beneficial value, both of which are subjective to the respective actors. In the real world, the minimum wage is zero, for that’s what you make when you don’t or can’t get employed. The real market minimum wage will be some number higher than zero, no matter what governments mandate.

        The differential between the real minimum wage and the government decree partly sets the unemployment rate of labor. The differential between the real minimum time discount of capital and the government decree partly sets the unemployment rate of both labor and capital.

  7. Pingback: Leftards And Income Inequality ….. How Much Would It Be If We Just Protected Our Borders? | suyts space

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