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Sticking It to Low-Skilled Workers
HUMAN EVENTS ^ | Jan 10, 2007 | John Stossel

Posted on 01/13/2007 6:02:39 PM PST by george76

In the first hundred hours of the just-started session of Congress, the new leadership promises to raise the minimum wage. The Democrats won't be opposed by many Republicans.

Raising the minimum wage is definitely popular. Voters in six states approved higher minimums last Election Day. State politicians in both parties are practically drooling with eagerness to "help" lower-income workers.

We all want the poor to make more money. So if government can raise wages by decree, why are the popular proposals so stingy?

Let's really do something for the poor. Let's raise the minimum wage to $20 an hour. Even better, $50!

Or maybe we should take a deep breath and think like economists for a change.

The law of supply and demand, which operates whether we like it or not, says that when the price of something goes up, people buy less of it. That's why environmentalists like higher gasoline taxes, and anti-smoking activists back higher cigarette taxes.

The law of supply and demand works in the labor market, too. If government mandates a higher minimum wage, some workers will get a raise. Some. But something else will happen. Employers will hire fewer low-skilled workers. Others will let some current workers go. Some will choose not to expand their businesses. A few will close altogether.

Only 2.5 percent of all hourly workers make $5.15 an hour ...says the Department of Labor. "Minimum wage workers tend to be young."

Few of them stay at the minimum wage for long. As they acquire skills, their productivity rises and they command higher wages.

Legal wage minimums kill all kinds of entry-level jobs, particularly those that would teach young people basic work habits and the benefits of effort. That's why there are no kids cleaning your windows at gas stations or ...

(Excerpt) Read more at humanevents.com ...


TOPICS: Business/Economy
KEYWORDS: business; congress; corruption; economy; governmentmandates; minimum; minimumwage; nancypelosi; pelosi; taxes; union; unions; wage; wages
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1 posted on 01/13/2007 6:02:41 PM PST by george76
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To: FreedomProtector

Another issue that's not often taken into consideration is there's a difference between what a worker takes home in pay and his total compensation. Employers must pay for legally required worker benefits that include Social Security, Medicare, unemployment insurance, workers' compensation, health and disability insurance benefits, and whatever paid leave benefits they offer, such as vacations, holidays and sick leave.

It's tempting to think of higher minimum wages as an anti-poverty weapon, but such an idea doesn't even pass the smell test. After all, if higher minimum wages could cure poverty, we could easily end worldwide poverty simply by telling poor nations to legislate higher minimum wages.

http://www.jewishworldreview.com/cols/williams042606.asp


2 posted on 01/13/2007 6:05:46 PM PST by george76 (Ward Churchill : Fake Indian, Fake Scholarship, and Fake Art)
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To: george76

I hope they raise it to $15/hour. It would be a boon to the robotics industry as well as end immigration for low skilled jobs overnight.


3 posted on 01/13/2007 6:08:35 PM PST by Reeses
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To: george76

Nobody's talking about the Journeyman's pay. His pay is set at a certain multiple of the entry level pay in many cases.Depends on his contract. Be sure his Union will be around soon to set things right. You can bet ALL the Senators know this too.


4 posted on 01/13/2007 6:13:27 PM PST by Waco
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To: george76

I think some companies counter that by using more 'part' time workers, which do not require some of those benefits you mentioned. Correct?


5 posted on 01/13/2007 6:22:01 PM PST by FLOutdoorsman (The Man who says it can't be done should not interrupt the man doing it!)
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To: Waco
Nobody's talking about the Journeyman's pay. His pay is set at a certain multiple of the entry level pay in many cases.

All the Senators know this.

The union bosses do not talk about it openly.

More dues for the union bosses.

6 posted on 01/13/2007 6:24:42 PM PST by george76 (Ward Churchill : Fake Indian, Fake Scholarship, and Fake Art)
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To: george76
i'm not for mandated wages.
This article has me scratchin my head.

Only 2.5 percent of all hourly workers make $5.15 an hour ...says the Department of Labor. "Minimum wage workers tend to be young."

If this statement is true, then the effect of the increase of minimum wage should be negligible.
There must be something more to this being such a big-deal.
7 posted on 01/13/2007 6:27:31 PM PST by stylin19a
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To: FLOutdoorsman

Moving jobs to part time and to off shore are two ways to try to cut expenses.

Also sub-contracting work to outside vendors is another way.


8 posted on 01/13/2007 6:27:40 PM PST by george76 (Ward Churchill : Fake Indian, Fake Scholarship, and Fake Art)
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To: stylin19a

The big deal is the politics.

The politicans can say that they are helping the poor.

The old media goes along with the theatre by writing articles on how this helps the poor.



A few like Walter Williams, John Stossel, and Thomas Sowell see thru the smoke...


9 posted on 01/13/2007 6:32:49 PM PST by george76 (Ward Churchill : Fake Indian, Fake Scholarship, and Fake Art)
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To: george76

I propose that the Federal Minimum Wage must be increased to the same wage that Speaker Pelosi earns because most minimum wage employees earn the money they work for. I'm not so sure about Pelosi.


10 posted on 01/13/2007 6:35:07 PM PST by harpo11
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To: Reeses

Senator Rockefeller from West Virginia apparently once was complaining that his neighborhood was getting too crowded with doctors, etc.

So he proposed higher local property taxes to keep out the newly rich that were invading the old rich areas.


11 posted on 01/13/2007 6:38:19 PM PST by george76 (Ward Churchill : Fake Indian, Fake Scholarship, and Fake Art)
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To: stylin19a
If this statement is true, then the effect of the increase of minimum wage should be negligible.
There must be something more to this being such a big-deal.

---
The minimum wage is a benchmark. If it goes up 20%, all the union guys are supposed to get a 20% increase in their wages, so they stay ahead of the minimum wage guys. See how it works?
12 posted on 01/13/2007 6:38:57 PM PST by Cheburashka ( World's only Spatula City certified spatula repair and maintenance specialist!!!)
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To: harpo11

Speaker Pelosi's husband ''just happens'' to own a big chunk of land which used to belong to the Federal Government (us taxpayers) : Hunters Point Naval Shipyards.

Her protégé, Gavin Newsom, current Mayor of San Francisco, is trying to strike up a deal where the San Francisco 49ers will get that land and stay in the city, rather than moving to Santa Clara and building a new stadium down there.

But there seems to be some problem with the Naval shipyard being a Superfund cleanup site.

Stand by for developments as the blinkless wonder simultaneously cleans up corruption in Congress, and finds a way around this ''Inconvenient Truth.''


13 posted on 01/13/2007 6:41:34 PM PST by george76 (Ward Churchill : Fake Indian, Fake Scholarship, and Fake Art)
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To: george76

bttt


14 posted on 01/13/2007 6:47:19 PM PST by nopardons
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To: george76
I lived in a quonset hut at Hunter's Point while my dad's ship was being repaired. I was about 3 years old at the time. I recall being there for Easter in 1959.
15 posted on 01/13/2007 6:48:24 PM PST by Myrddin
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To: george76
Let's really do something for the poor. Let's raise the minimum wage to $20 an hour. Even better, $50!

Even better, $500 million an hour!!!

I'm so tired of reading this infantile argument.

Perhaps we should allow sweat shops to pay 25 cents an hour if that's what they can get away with.

16 posted on 01/13/2007 6:49:59 PM PST by Jorge
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To: Cheburashka
The minimum wage is a benchmark. If it goes up 20%, all the union guys are supposed to get a 20% increase in their wages, so they stay ahead of the minimum wage guys. See how it works?

Which explains why unions are disappearing.

17 posted on 01/13/2007 6:51:55 PM PST by Jorge
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To: All

There are only two reasons that I can think of to legislate an increase in the minimum wage.

1. It will give there union buddies more bargaining power come negotiation time.


2. It will increase the money they have to buy more votes via the increase in wage taxes.

They're all crooks !!!!


18 posted on 01/13/2007 6:52:56 PM PST by Jeffrey_D. (Seek first to understand, then to be understood)
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To: Jorge

Why not...if they can find people to work at those wages.


19 posted on 01/13/2007 6:54:44 PM PST by SamAdams76 (I'm 66 days from outliving Steve Irwin)
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To: george76
The other reason that Pelosi is nervous about the Samoa revelation is the proof that the minimum raise gets people fired. She's not just protecting her own corruption, she's protecting the whole philosophy (such as it is) of the Democrat Party.

Congressman Billybob

Latest article: "Nancy's Culture of Corruption, Part II"

20 posted on 01/13/2007 6:54:49 PM PST by Congressman Billybob (Please get involved: www.ArmorforCongress.com)
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To: stylin19a

Yes, there is ... all the jobs that are indexed off the minimum wage. Who do you think makes the contributions to the RAT party, the minimum wage earners or the unions? See #4. There are also the liberal northeast states with their higher minimum wages tired of losing companies to states with lower minimums. A national standard helps to dampen that effect. Meanwhile, what was that teen unemployment rate in the inner cities again?


21 posted on 01/13/2007 6:56:24 PM PST by NonValueAdded (Pelosi, the call was for Comity, not Comedy. But thanks for the laughs. StarKisses, NVA.)
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To: Reeses

you honestly think a drug dealer who also dips into the welfare pool is going to get a real job? LOL


22 posted on 01/13/2007 6:59:07 PM PST by phoenix0468 (http://www.mylocalforum.com -- Go Speak Your Mind.)
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To: stylin19a
Very simple. When you raise the pay of workers without increasing their productivity, it has an effect on those productive workers currently making the higher wage. Since they produce more, their wages must be moved up as well. This flows right up the latter. No gravity problem here. The union bosses know this, so look for some major contract demands in the next few years. Wage costs increasing without any increase in productivity will only increase the threat of inflation. But hey, it feels good, right?
23 posted on 01/13/2007 7:00:09 PM PST by Kickass Conservative (Sarcasm is something a liberal cannot understand. Along with everything else.)
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To: Congressman Billybob
Exactly.

the minimum raise gets people fired.

She's not just protecting her own corruption, she's protecting the whole philosophy (such as it is) of the Democrat Party.

24 posted on 01/13/2007 7:00:56 PM PST by george76 (Ward Churchill : Fake Indian, Fake Scholarship, and Fake Art)
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To: Cheburashka

thanks..i didn't know that


25 posted on 01/13/2007 7:03:55 PM PST by stylin19a
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To: NonValueAdded

As the unions die, so does their ability to extort money from all union members to support the union bosses political friends.

Not just union money but union employees who 'volunteer' their time getting the vote out...


26 posted on 01/13/2007 7:05:11 PM PST by george76 (Ward Churchill : Fake Indian, Fake Scholarship, and Fake Art)
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To: george76
They could LOWER ALL TAXES and people wouldn't need a so-called raise. When politicians get through raising taxes to pay for their pet projects the 'raise' won't even matter.
27 posted on 01/13/2007 7:08:28 PM PST by kcvl
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To: george76
Gavin Newsom is related to Nancy Pelosi (by marriage, not blood), and others in her family, such as Laurence Pelosi, a nephew, are involved with Kenwood Industries, Lennar Homes, etc., which are heavily involved in rehabbing Treasure Island much the same way they handled the Presidio matter.

It's all very insidious and nebulous, and of course reeks of nepotism.

I think we should continue to follow the money when it comes to our favorite grandmother, Nancy Pelosi, and then expose her corruption where ever we find it...although I fear that would be a fulltime job!

28 posted on 01/13/2007 7:13:14 PM PST by IrishRainy ((The only way BJ Clinton would have nailed bin Laden is if Ossama had been a White House intern.))
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To: george76
The "blinkless wonder" seems to be as corrupt as all the harping and nagging she has yapped about.
29 posted on 01/13/2007 7:17:50 PM PST by harpo11
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To: george76
"Let's raise the minimum wage to $20 an hour."

FWIW, that's what I was getting as a part time movie usher in 1957, adjusted for inflation.

30 posted on 01/13/2007 7:18:51 PM PST by SmartAZ
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To: kcvl; onyx
" Starkist, whose tuna-packing plant in American Samoa now pays $3.60 an hour ..."

Pelosi and friends will be mad if they have to pay the new minimum wages.


We agree...the higher tax rates and new government mandated programs will easily wipe out any raises.
31 posted on 01/13/2007 7:22:14 PM PST by george76 (Ward Churchill : Fake Indian, Fake Scholarship, and Fake Art)
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To: george76

BUMP


32 posted on 01/13/2007 7:23:25 PM PST by onyx (DONATE NOW! -- It takes DONATIONS to keep FR running!!)
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To: harpo11

Nancy Pelosi, her commitment to organized labor essentially ends when it comes to her own businesses. Nancy Pelosi and her husband own a Napa Valley vineyard...

They grow very expensive grapes for very expensive wines, and they don’t use members of the United Farm Workers to pick their grapes.

This winner of the Cesar Chavez award hires only non-union contractors.


33 posted on 01/13/2007 7:24:31 PM PST by george76 (Ward Churchill : Fake Indian, Fake Scholarship, and Fake Art)
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To: IrishRainy; Mia T; ExTexasRedhead; Bonaparte

The Pelosi family have a long political tradition from Baltimore.

There are many stories. At least some of them must be accurate.


34 posted on 01/13/2007 7:28:49 PM PST by george76 (Ward Churchill : Fake Indian, Fake Scholarship, and Fake Art)
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To: doug from upland

A Nancy Pelosi Moment: 2 - Look for the Union Label

http://youtube.com/watch?v=PC1L03CFlrw


35 posted on 01/13/2007 7:31:33 PM PST by george76 (Ward Churchill : Fake Indian, Fake Scholarship, and Fake Art)
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To: IrishRainy

Laurence Pelosi is an Executive Director with Morgan Stanley Real Estate, where he focuses on residential investments and public private real estate partnerships in the western United States. Prior to joining Morgan Stanley, Mr. Pelosi was with the Lennar Corporation, a residential developer and homebuilder and practiced real estate and land use law in private practice.

Mr. Pelosi is on the boards of the San Francisco Planning and Urban Research Association (SPUR) and Family House. He received a B.A. from the University of California at Berkeley and a J.D. from Georgetown University.


36 posted on 01/13/2007 7:32:37 PM PST by kcvl
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To: george76

Feinstein and Pelosi continue to top the list of the richest members of Congress

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2004/06/26/BAG7B7CDMQ1.DTL

Pelosi, who is married to investor Paul Pelosi, has amassed a large portfolio of jointly owned real estate, including three properties in the Napa Valley. They sold an 8-acre vineyard on Skellenger Lane in Rutherford last year for $1 million to $5 million, according to her disclosure form.

Paul Pelosi's holdings include a four-story commercial building on Belden Place in San Francisco, a retail and office building on Sir Francis Drake Boulevard in San Anselmo and an ownership stake in the Auberge du Soleil resort in Napa Valley valued at $1 million to $5 million. He also has millions of dollars of shares in publicly traded companies such as Microsoft, Amazon. com and AT&T.

The couple estimated their total assets to be worth $25 million to $102 million last year, with liabilities of $6 million to $31 million. Assets are reported in broad ranges on the disclosure forms, making it difficult to determine a lawmaker's exact net worth.


37 posted on 01/13/2007 7:36:34 PM PST by kcvl
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To: SamAdams76
Why not...if they can find people to work at those wages.

Right. If we can bring 25 cent an hour sweat shops to America you are all for it.

Incredible.

38 posted on 01/13/2007 7:37:28 PM PST by Jorge
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To: george76

she has a $1 million-plus residence and a lifestyle that doesn't depend on the $212,100 annual salary she will receive as speaker.


While Nancy Pelosi has been a longtime supporter of the United Farm Workers, the small vineyard she and her husband own in St. Helena doesn't hire union labor to pick the grapes there. Likewise, the couple have investments in the boutique hotel in Rutherford and the upscale Italian restaurant chain, which aren't union shops.

"If your view is that labor unions are essential to protecting workers' rights, you ought to have the attitude that we really need a union" in your own investments, Schweizer said.


The UFW has only a handful of contracts in the Napa Valley, and the crews that harvest the Pelosis' 7-acre vineyard haven't made any move to seek union representation, Grossman said.


Paul Pelosi has indicated that rather than respond publicly, he's just going to ignore the charges and the finger-pointing.



http://tinyurl.com/y3yydy


39 posted on 01/13/2007 7:45:35 PM PST by kcvl
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To: kcvl

Pelosi. The Richest. Speaker. Ever.

http://www.freerepublic.com/focus/f-bloggers/1719204/posts


40 posted on 01/13/2007 7:49:20 PM PST by george76 (Ward Churchill : Fake Indian, Fake Scholarship, and Fake Art)
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To: Kenny Bunk

Another big issue is the environment. She always makes statements that, with us, the environment is not an issue, it’s an ethic, it’s a value. Which is a nice way of saying, “I love the environment, but not when it comes to our own businesses.”

in 1996, Nancy Pelosi and her husband and fewer than 10 other partners wanted to build a golf course and country club outside of San Jose, California, called the CordeValle Country Club.

They never followed the environmental regulations. The ponds were never built for these endangered species. For seven years, they also failed to file any of the environmental reports required by the California Fish and Wildlife Commission.

A 2004 County Environmental Compliance Report found all kinds of environmental problems on the Pelosi's golf course.

What does that actually mean in practical terms? Did they turn around and build this habitat and comply?

No, they solved the problem the old-fashioned way: they hired lobbyists and they got the environmental regulations changed.


41 posted on 01/13/2007 7:52:25 PM PST by george76 (Ward Churchill : Fake Indian, Fake Scholarship, and Fake Art)
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To: george76

Pelosi, was one of just 37 House members to receive a 100 percent rating last year from the liberal Americans for Democratic Action


Pelosi knows the value of money in politics; over the last two elections her political action committee doled out more than $2 million to grateful Democratic candidates.


Nancy Pelosi, mother of five, grandmother of five, refers to herself as a “conservative Catholic.” It’s an intentionally provocative characterization for someone who is pro-choice on abortion, thinks women should be admitted to the priesthood (“Why not?” she asked), and opposes mandatory celibacy (“I know that [the married priesthood] is in the future, I just don’t how long it will take”).


Nancy Pelosi was the mayor’s daughter.

The Baltimore of “Tommy the Elder” (Pelosi’s brother “Tommy the Younger” would go on to serve a term as mayor in the late 1960s)

Favors could be called in and patronage flowed. Pelosi brothers Hector and Joey, for example, worked at the courthouse. Constituents seeking assistance appeared nightly at the family’s home.

Pelosi’s mother, Nancy D’Alesandro, was no political slouch; as a faithful member of the Democratic Women’s Club, she provided political intelligence and community insights that served the mayor well.

Upon graduation in 1962, she married Georgetown University graduate Paul Pelosi. The couple moved first to New York and then to San Francisco, Paul Pelosi’s hometown.


http://tinyurl.com/yg48ym


42 posted on 01/13/2007 7:52:37 PM PST by kcvl
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To: Suzy Quzy

Remember Linda Chavez?

She had to withdraw from consideration for a cabinet post because one of her employees was an illegal alien.

So how about Nancy Pelosi ?


43 posted on 01/13/2007 7:54:14 PM PST by george76 (Ward Churchill : Fake Indian, Fake Scholarship, and Fake Art)
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To: VOA; bitt

The liberal Center for Responsive Politics pegs Pelosi's net worth as being somewhere between $14,746,108 and $55,085,000.


44 posted on 01/13/2007 7:55:33 PM PST by george76 (Ward Churchill : Fake Indian, Fake Scholarship, and Fake Art)
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To: george76
Pelosi, who was just named best-dressed in Congress by the Washington weekly Roll Call, wore high-waisted pants in a subtle plaid and a long-sleeve white linen shirt.

''I ironed it myself,'' she said.

Her husband, who chooses all of her clothes, looked equally elegant. He, too, wore high-waisted plaid pants, but with a short sleeve white cotton shirt.

45 posted on 01/13/2007 7:56:23 PM PST by kcvl
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To: Jorge

do you believe people can be made worse off by providing them with another option?


46 posted on 01/13/2007 7:57:52 PM PST by undeniable logic
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To: george76

Father: Thomas D'Alesandro, Jr. (Mayor of Baltimore 1947-59, b. 1-Aug-1903, d. 23-Aug-1987)
Mother: Annunciata D'Alesandro ("Nancy", d. 3-Apr-1995)
Brother: Thomas J. D'Alesandro III (Mayor of Baltimore 1967-71, b. 24-Jul-1929)
Brother: Franklin Delano Roosevelt D'Alesandro ( "Roosie")
Brother: Hector D'Alesandro (d.)
Brother: Nicholas D'Alesandro
Brother: Joseph D'Alesandro (d.)
Husband: Paul F. Pelosi (businessman, m. 1963, four daughters, one son)
Daughter: Nancy Corinne Pelosi (hotel executive)
Daughter: Christine Pelosi (former chief of staff for Rep John Tierney)
Daughter: Jacqueline Pelosi Kenneally (runs an art school for children)
Son: Paul Pelosi Jr. (President of San Francisco's Commission on the Environment)
Daughter: Alexandra Pelosi (documentary filmmaker)


47 posted on 01/13/2007 7:58:47 PM PST by kcvl
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To: george76

Why not raise it? Because people that are getting minium wage are alos recieving assistance from the government for rent, food and expenses. If you raise it than they will not have to depend on social programs that sap our tax money.


48 posted on 01/13/2007 8:00:00 PM PST by lndrvr1972
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To: kcvl

" this witch is the same women who owns more then a few vineyards in Napa Valley and will only hire non-union firms to pick their grapes. Why? Because they don't have to pay a "living wage" to the workers then.

She also owns a large stake in the ritzy hotel in Napa called Auberge du Soleil. All employee's are non-union.

She is also a partner in the restaurant chain Piatti…again, all non-union. "

http://www.floppingaces.net/2006/08/04/nancy-pelosi-the-sky-is-falling/


49 posted on 01/13/2007 8:00:09 PM PST by george76 (Ward Churchill : Fake Indian, Fake Scholarship, and Fake Art)
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To: Jorge
Right. If we can bring 25 cent an hour sweat shops to America you are all for it.

Economics is not your strong point. My hiring of neighbor kids to clean yard and babysit is not subject to the minimum wage and I would not be able to find anyone to work for 25 cents an hour.

You really think that "if we let them" companies would hire help at 25 cents per hour?

50 posted on 01/13/2007 8:00:41 PM PST by Raycpa
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