Thursday, September 5, 2013

Why Not Make Everyone Rich With a $50 Minimum Wage?

By Caroline Baum

Last week, fast-food workers staged a one-day strike in 60 U.S. cities to demand a minimum wage of $15 an hour, more than double the current federal minimum of $7.25. The nationwide effort, “Fight for 15,” was organized by the Service Employees International Union.

I feel bad for those who are relegated to a minimum-wage job. I feel worse for those who want a minimum-wage job as a steppingstone to something better and would be denied that opportunity by the imposition of a higher wage floor. A higher wage is great for the workers who keep their jobs; it isn’t so great for those who wouldn’t get hired because McDonald’s Corp. (MCD) starts asking its existing workforce to do a bit more. With a higher minimum wage, the cost of automating certain tasks suddenly becomes more affordable.

Raising the minimum wage to lift people out of poverty has the opposite effect. So why does an idea that violates the most basic principle of economics keep coming back to haunt us? It may appeal to our humanitarian instincts, but as social policy, it fails the test.

Let’s start with the basics.

Read the rest here.


  1. Fix the M O N E Y!!

    1. Not to worry. Soon it will be $500/hr, then $1000, then 10,000 (still won't buy shit) - Look out Zimbabwe, here we come...

      FIX THE M O N E Y!!!

  2. The simple minded idiots will never understand economics. You can't just force up wages simply because you want to and not have bad effects. Like Anon said, "Fix the money!".

    Not only stop the endless inflation but go back to gold, toss out the endless regulations, and let people be entrepreneurs again. If we don't it's all our funerals. It amazes me just how stupid and ignorant people are. Especially those with an internet connection who should know better.

  3. In all seriousness, can anyone explain why no state has tried raising the minimum wage to $50/hr?

    Since broader support for minimum wage comes from ignorance rather than protectionism, it seems bizarre that no legislature, or even candidate, has taken it to this logical conclusion.