Saturday, February 16, 2013

You want a minimum wage increase? More proof economics education is still needed

OK, yesterday I posted in praise of Obama.  Now, let's get back to normal.  

Obama proposed raising the minimum wage to $9.00 in his State of the Union speech.  This is a bad idea.

The unemployment rate among 16-19 year olds in 2012 was 24%.  The minimum wage should be lowered or eliminated to help out our country, not raised.  

If this type of minimum wage had been in place when I was young, I doubt I get my first job at age 14 at a fast food restaurant.  The skills I learned from my first job at minimum wage helped me in my subsequent jobs that earned me more money.  Today's teenagers don't have the opportunities I had because of the $7.25 minimum wage (or higher in some states). At $9.00, it will be much worse.  

I hope Obama fails miserably at this attempt to harm our country.  On this issue, however, many Americans are sadly foolish and support a minimum wage.  So it probably will pass, the unemployment rate for youth will remain high, and the same people who support these increases will write articles trying to figure out why the teenage unemployment rate is so high.  (While mostly ignoring minimum wage increases as a factor.)

I could write more, but instead will link to others so you can get a diverse set of views.

1. Read about the minimum wage's use as a tool for racists.  (WSJ version here, but it is gated)

2. If you think the minimum wage is a good idea, why not go to $90/hour?

3. Mankiw blogs.

4. Krugman criticizes those who oppose Obama's proposal.  He doesn't really argue the policy here, he just seems to argue that anybody who disagrees with him must be evil. Where have I seen this before?  

5. Hamermesh thinks "will kill off a few jobs that would otherwise have been created" but that we should go ahead with it anyway to avoid politicians bickering.  I couldn't disagree more.  First, if you think a policy is bad, I don't think giving in is right.  I want to see my representative fighting for what's right.  Second, politicians usually cause more harm than good when creating new laws, so I'd rather have them argue over this law than give in and have more free time.  (Even if it is increased.)

No comments:

Post a Comment