Minimum Wage Revisited

I post about the govt.-enforced minimum-wage laws here often. They are a particular pet-peeve of mine, and they are  near perfect lesson in the differences between intentions and results.

So let ‘s look again. Yesterday’s WSJ offered a nice treat. An editorial from Drs. Boudreaux and Williams. They discuss the problems with the minimum-wage.

Why Be So Cruel, Why Not $50 / Hour? ]

I am not the first person to channel Dr. Sowell here, but the point needs to be made again, reality is not optional. Neither are the laws of economics.

[ Sadly, the Constitution does appear to be optional for many, each political side picks from it as though it was an a la carte menu.]

Not knowing or understanding the basic laws of economics does not negate them any more than ignorance of gravity negates falling. And perhaps more insidious are those who have a bachelor’s, master’s or even PhD. in economics who simply ignore the reality as it doesn’t mesh with their views of how the world should be cosmically aligned. You know who you are. ;-)

If minimum-wage laws are necessary to prevent employers from paying less than that, why does anyone ever earn more than the legislated minimum-wage? And no, calling it something more emotional like “living wage” doesn’t change anything substantive.

Click through and enjoy.

Boudreaux and Williams: How to Keep More Kids on the Streets – WSJ.com: If minimum-wage legislation only destroyed jobs for teenagers, it would be bad enough. But its long-term consequences are more dire. Precisely because the climb to higher wages begins for most workers during their teenage years with entry-level jobs, the minimum wage—by knocking off the bottom rungs of the economic ladder—effectively tells young workers: Unless you can jump immediately to higher rungs on the ladder, you must remain unskilled and unemployed for the indefinite future. Moreover, the little bit of money a teen can earn after school or in the summer is nowhere near as important as what he learns from these early work experiences, such as showing up on time, respect for supervisors, and pride from being financially semi-independent. Such experiences are even more vital to minority youths who attend rotten schools or live in broken homes. If they are to learn to become valuable workers, it will be through jobs they hold and not the schools they attend. All the good intentions of the champions of minimum-wage raises do nothing to cure these evil consequences. In New Jersey, and everywhere else, compassionate policy requires that we think with our brains and not with our untutored hearts.

Related links:
God-like Only When Convenient
Why Be So Cruel, Why Not $50 / Hour?
Two Quick Questions To Ponder …
Where’s Your Compassion?! Why Not $100/Day?
Minimum Wage Updates, Will They Ever Get It?