Monday, January 08, 2007
Moore on the Minimum Wage
Nathan Moore comes out against the proposed minimum wage increase that Nancy Pelosi is touting.
Moore is right, of course. Every credible study out there shows that such a minimum wage increase has two predictable effects:
1) A certain percentage of people will lose their jobs as their employers financially juggle wage costs.
2) Small businesses suffer.
The entire episode by Pelosi is full of sound and fury to create the appearance that the Democratic Congress is doing something. The truth is that a great percentage of those earning the minimum wage are teenagers on their first jobs who contribute to an average household income much greater than my own.
You don't cure poverty with a minimum wage increase. It simply is not the solution, but the Democrats can't do anything about the problem, so they will at least make it look like they are doing something about the problem by getting some people laid off and hurting small business.
Gotta love that Democratic leadership...
Moore is right, of course. Every credible study out there shows that such a minimum wage increase has two predictable effects:
1) A certain percentage of people will lose their jobs as their employers financially juggle wage costs.
2) Small businesses suffer.
The entire episode by Pelosi is full of sound and fury to create the appearance that the Democratic Congress is doing something. The truth is that a great percentage of those earning the minimum wage are teenagers on their first jobs who contribute to an average household income much greater than my own.
You don't cure poverty with a minimum wage increase. It simply is not the solution, but the Democrats can't do anything about the problem, so they will at least make it look like they are doing something about the problem by getting some people laid off and hurting small business.
Gotta love that Democratic leadership...
Labels: Minimum Wage
Permalink posted by Rob Huddleston @ 12:46 PM 
