Ten Truths About Minimum Wage

We have written often about minimum wage, but this is our first post entirely on that topic; it contains much new material and updated statistics. Like most liberal bromides, the minimum wage harms the people it is intended to help. Here are ten truths about the minimum wage and the harm it causes the most vulnerable Americans.

1. The poor need jobs. Most people in poverty don’t work; raising the minimum wage makes it harder for them to find jobs. Those on welfare or unemployment don’t benefit.

2. Median household income $66,000. Those on minimum wage, like spouses and teens living at home, are part of solid middle class households; they are not poor.

3. Median age 24, 60% in school. A majority of minimum wage earners are young students; they are not full time workers trying to support a family.

4. 1% affected, 6 months or less. Nearly all (99%) workers earn above the minimum wage and virtually no heads of households or full time workers are affected. Those who do earn the minimum wage do so for an average of less than six months.

5. Increased cost of living. Child care workers earn $11/hour. A $15 wage would raise the monthly cost to families by $250 and would force many poor people to quit work to care for their children. Raising grocery workers to $15 would hike food costs.

6. The EITC is cut. Any benefit from a higher minimum wage would be substantially negated by a reduced earned income tax credit and is a disincentive to working.

7. Unemployment increased. Whenever the minimum rises, businesses automate and relocate. When the price of anything (labor) goes up, there is less of it.

8. Total wages decrease. Although hourly rates will rise to the new minimum, total earnings will go down due to fewer hours worked. When Seattle raised its minimum wage in 2016 to $13/hour, the earnings of low-wage workers actually declined.

9. Most vulnerable harmed. All the aforementioned problems with minimum wage disproportionately harm uneducated, poor, minority, low-skilled and young workers.

10. Differences between states. There are glaring differences in $15/hour between say Mississippi and New York. Mississippi would experience increased costs of over 40% in child care and other low-wage services; restaurants would all but cease to exist.

The ten truths and statistics listed supra are hard facts, not opinion. Economists of all political persuasions are near-unanimous in opposing raising the minimum wage. Why therefore is a $15 minimum wage an article of faith for progressives?

The answer is the same as for other progressive shibboleths: (1) it is about socialism, not economics; (2) they are virtue signaling; (3) it is all about intentions, not results; (4) it is a sop to labor unions by reducing competition for lower-paying jobs; (5) they know their media sycophants will shill for them; and (6) liberalism is a lie.

Markets determine wages, not governments. Regardless of the law, the real minimum wage always is zero, zilch, nada, niente, scratch, nix, zip, nothing – and that is the wage more and more workers will receive if the minimum is raised to $15 per hour.

Our next post is about inequality of wealth in America.

Click here to join our mailing list

More Liberty Less Government – mllg@cfl.rr.com – www.mllg.us