Mythology of the Minimum Wage

Ludwig von Mises Institute ^ | May 03, 2006 | DW MacKenzie

[Marxbites]

The economic case against minimum wage laws is simple. Employers pay a wage no higher than the value of an additional hour's work. Raising minimum wages forces employers to dismiss low productivity workers. This policy has the largest affect on those with the least education, job experience, and maturity. Consequently, we should expect minimum wage laws to affect teenagers and those with less education. Eliminating minimum wage laws would reduce unemployment and improve the efficiency of markets for low productivity labor.

[Marxbites]

When will the DC pinbrains ever get it right?

Senator Turbin is a prime example.

[libertarianPA]

If the minimum wage is the key to getting people out of poverty in a land of plenty, why don't these bleeding heart liberals propose to raise it to $100 an hour?

[dynachrome]

" $100 an hour"

I need at least 1 million dollars a year to live well, so I propose that be the minimum wage.

[ConservativeBamaFan]

Better yet, why are they and their offices NOT subject to the minimum wage (not that anyone in a Congressional office makes less than that mind you . . .)

[Extremely Extreme Extremist]

Be prepared to pay $100 for a McDonald's cheesburger.

[Lunatic Fringe]

I like the system in the Texas legislature... amateur politicians that meet once every 2 years, and receive a salary of $7,200.

[Billthedrill]

It's considerably more than the minimum wage - add required benefits and cost of OSHA regulations to the mix and you'll find the wage itself is only a minor part of the problem. The problem is the government tampering with the market for "higher" motives.

[sionnsar]

Be prepared to pay $100 for a McDonald's cheesburger.

Expect a lot more automation in the production of a McDonald's cheeseburger.

[theFIRMbss]

>Mythology of the Minimum Wage

Remember that one
where Minimum Wage becomes
a swam to seduce

Tyndareus'
wife? Remember what that caused?
Nothing but problems . . .

[Beagle8U]

Raising the min. wage is stupid and only hurts those that proponants claim to want to help.

Most earning min. wage are teenagers or semi retarded persons working in "Charity" type jobs like Goodwill ind.

The only ones that benefit from raising it are unions that get an automatic raise when it goes up.

We need to make every state a "right to work" state, and outlaw the communist unions.

[TASMANIANRED]

If raising the minimum wage was the key then why didn't it work the other 40 times it has been done.

[libertarianPA]

Most earning min. wage are teenagers or semi retarded persons working in "Charity" type jobs like Goodwill ind.

Well said. The last info I read said that only 7% of minimum wage earners are heads of families and the sole source of income. So, we're supposed to inflate prices and retard job creation for 7% of all minimum wage earners???

[Frank_2001]

Great article!

[dl5192]

Better yet, why are they and their offices NOT subject to the minimum wage (not that anyone in a Congressional office makes less than that mind you . . .)

Actually, I bet there are a fair number of interns and campaign staff and volunteers that work for free. How about members of congress be required to pay the minimum wage for all of these people WITHOUT the option of raising their congressional operating budgets to pay for it (just like a business can't simply wave a wand and raise revenue to pay for increased minimum wage). Let's see how fast those ranks shrink and how loud the politicians scream when they can't afford to run a campaign or a congressional office.

[Beagle8U]

What I stated was a fact (as you noted) and charity type jobs depend on ..well.. charity.

Increase the costs and you are limited by the amount of charity money you have.

Some of those that had a job that helped their feeling of self worth, will lose their job.

[justanotherfreeper]

It's amazing to me that the libs think some magic number will make the value of entry level labor worth more. Money is just a symbol, it lets you trade your labor for an amount of goods and services. Your labor is worth what someone will trade in goods and services for your labor. My guess is minimum wage earners will always have trouble supporting a family on their salary, won't be purchasing Tiffany diamonds, etc, because no one would directly give someone with no skills that level of compensation. Setting some "magic number" you have to pay them means either inflation rises (so they get the same level of goods and services) or nobody hires them (because nobody will trade that level of goods and services for low skill labor.) Rocket science this isn't.

[Phlap]

The minimum wage is the new slavery.

[Marxbites]

Good on ALL of you! Thanks for your considerable logic.

Yesterday I posted an article on the Rockefeller created CFR, and how they've positioned their members in every Whitehouse & Cabinet (ex-Ronnie) since WWII, and all I got was tinfoil hat crowd flames and the idiot treatment.

What gives here at FR, too few with too little self serving non-public education???

[AbeKrieger]

Congress should enact a law that mandates no person shall receive public assistance in any case in excess of 80% of minimum wage, including benefits, regardless of family status. No one on the dole should ever do better than someone who at least goes to work every day.

[L98Fiero]

This states that only 520,000 Americans even make minimum wage. 7% of that 36,400. Nationally, hardly anyone at all. And legislation gets passed based on this. Pathetic.

http://www.freerepublic.com/focus/f-news/1621782/posts