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To: jazusamo
Yes, Sowell is a man of remarkable wisdom and honesty.

But he's swing-and-a-miss on minimum wage.

Thanks to legal and illegal immigration, America has a massive oversupply of low skill labor.

Thanks to automation, supply chain management, and foreign competition, American demand for low skill labor has steadily declined for 40 years.

And thanks to the cultural catastrophe in the Black community, trying to manage low skill Black workers is the most challenging business assignment in America.

Reducing or eliminating the minimum wage will not solve any of those problems.

I've been a free enterprise Conservative since I was folding laundry in my Dad's hotel in the 1950’s.

But I've changed my mind about the minimum wage.

I think setting a high minimum wage would create two important outcomes:

(1) It would force marginal or poorly managed businesses to close.
(2) It would force successful businesses to continuously improve their management, their products, their production process, and their capital investment.

19 posted on 02/06/2012 1:49:21 PM PST by zeestephen
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To: zeestephen

Hah! And my view is the exact opposite!

In all the ranting about “illegal immigrants” and the eeevil businesses who hire them (no doubt mostly small, small businesses), not 1 person ever mentions how the Minimum Wage has created this Under-the-Table haven for illegals.

If there are illegals who don’t want to be discovered, you can hire them and pay them under the table - at cheap rates. Legal people MUST be paid the higher rates; they will be discovered.

So, businesses that struggle likely love the idea of paying low-skill people for their simple jobs rather than the crippling rates that merely START at MW.

Thus, and vicious cycle - MW+ is too high for small business, they secretly pay secret illegal residents for easy work, more illegals keep coming in.

Maybe if we cut off this socialist nonsense, there wouldn’t be so many illegals!


23 posted on 02/06/2012 3:10:34 PM PST by the OlLine Rebel (Common sense is an uncommon virtue./Technological progress cannot be legislated.)
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To: zeestephen

I don’t care how good the “outcomes” you feel would result from a high minimum wage. The thought process that led you to that conclusion is uninformed. Just read some of Thomas Sowell’s books on economics or for that matter just the pages in Walter Williams book that Sowell mentioned. Government mandated ANYTHING is just plan wrong.


25 posted on 02/06/2012 4:47:13 PM PST by mc5cents
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