AEIdeas

The public policy blog of the American Enterprise Institute

Subscribe to the blog

Discussion: (19 comments)

  1. According to the Brookings Institute, here are the three best tools for staying out of poverty, and don’t cost the taxpayers a dime:

    1. Graduating from high school.
    2. Waiting to get married until after 21 and do not have children till after being married.
    3. Having a full-time job.

    If you do all those three things, your chance of falling into poverty is just 2 percent.

  2. Todd Mason

    Tool #4 for the 7 million unemployed Americans who are age 35 or older: Roll back the clock.

  3. 1. Graduating from high school. 72% of minimum wage workers are high school graduates.

    3. Having a full time job. 31% of minimum wage workers have full time jobs.

    Raising the minimum wage would disproportionately affect Texans who have 8.1% of the nation’s hourly workers but 12.7% of minimum wage workers.

  4. “…. Only 3% of workers age 25 and over earn the minimum wage or less.”

    anyone got a credible link to support this statement?

    1. Todd Mason

      Correct but a bit misleading. Min wage workers age 25 and older represent 3.2 percent of all hourly employees as a group. But min wage workers as a whole account for only 5.2 percent of all hourly workers, and hourly workers represent 59 percent of all wage and salary workers. http://www.bls.gov/cps/minwage2011tbls.htm#4

      That said, it is a big deal in the restaurant industry, where 43 percent of workers are at or below.

  5. Benjamin Cole

    No I am not in favor of the minimum wage. But why is the topic always the minimum wage and never the lawyer’s guilds and their rents?

    Or the $150 billion and rapidly growing welfare system called the VA?

  6. What is the point of the over 25, less than high school unemployment rate graph?

    A more instructive graph is that rate less the total unemployment rate. Call it the excess unemployment rate. Doesn’t seem to be such a big deal.

    In any event, cutting across ethnicity, gender and geography, the minimum wage is about Hispanic women in the South Census Division. Just the demographic that the GOP appeals to. :-)

  7. Travis Garcelon

    Rather than fixing prices (a wage is a price) how about we focus on the price of goods. Obviously things are getting much more expensive due to inflation. How about we audit the federal reserve so we know what they are doing, and then we allow competing currencies. As well, lower taxes for everybody, lower spending levels, remove the income tax, and also markets to be free from over-regulation. These are all steps in increasing prosperity for everybody. Rather than focusing our attention on increasing wages, we should focus on allowing the market to determine what goods and services are worth.

  8. Labor rates are governed by the law of Supply and Demand just like any other commodity. That is the Reality some Businesses and the Politicians who shill for them want you to forget. We have our own poor who need Jobs and deserve our help, we do not need to import more.

    Our Immigration system must work to serve the best interests of our Citizens, not the illegals or companies who profit from them. Tell me; What have Illegals actually earned? At what point did their willingness to ignore and break our laws become a debt American Workers and Families must pay?

  9. ElDiablo666

    There is nothing more intellectually bankrupt than arguing that the minimum wage should be lowered or abolished. The only effective tool against poverty is liberty (socialism). Anyone who proposes nonsense like this and advocates tyranny ought to be hanged for treason.

  10. ElDiablo666

    There is nothing more intellectually bankrupt than arguing that the minimum wage should be lowered or abolished. The only effective tool against poverty is liberty (socialism). Anyone who proposes nonsense like this and advocates tyranny ought to be hanged for treason.

  11. I have heard on more than one occasion that the reason unions want the min wage increase is because there are a lot of union contracts out there that have their members hourly pay ( and dues) tied to multiples of the min wage. So the increase would not just be for the micky D worker.. it would increase union pay scales.
    I don’t have any proof but would love to know if anyone else has heard of this or has proof.

  12. The analysis is reasonable. There are many fast-food workers strike for a raise in minimum wage recently. But the government has to take a thorough look at the issue before deciding whether raise minimum wage or not.

  13. While economic factors vary from country to country, Australia has a minimum wage double ours and the lowest unemployment in the world. Well paid workers create demand, a word forgotten from the supply and demand principle of economics. These workers will spend every nickel and not one will idle in some investment that will not produce unless there is demand. We have seen too many bubbles because of to much capital chasing to few investments and the poor and lower middle class living on credit. Real wages means a robust economy and dollars on the move which creates growth and incentive to work as well as lowering government costs for social safety nets.

  14. Back of the envelope first order effects.

    3.5 million federal minimum wage workers working an average of 30 hours per week times 50 weeks per year times a $1.75 per hour minimum wage increase ($7.25 to $9.00 per hour) equals $9.2 billion in a $16 trillion economy. No Big Deal relative to orders of magnitude!

    Less SNAP, WIC, EITC from the feds which should make you libertarian pinheads ecstatic.

    1. You don’t understand marmico. This is a very important economic and ideological concept.

      It cannot be ‘violated’ without the spectre of libertarian armageddon looming!

      ;-)

    2. As usual, the pinhead thinks that a back-of-the-envelope calculation without any thought to where the money comes from or what happens next shows—PROFIT!!!111!

      Raise the minimum wage–how? Raise the prices of the goods bought from the businesses employing minimum wage workers (and not firing anyone but increasing their wages)? Great: Now the people buying at higher prices (say, paying the vaunted 68 cents more for a McDonald’s burger to cover a doubling of the grill workers’ salaries) have 68 cents less to buy other things with. So what happens to those who made or sold the things that the 68 cents, now in the McDonald’s tills, would have bought? Let’s see. 30 hours a week, minus the 68 cents that can’t go to those other businesses… ah, what the hell. You know the math works out like this: More money spent one place, less another. And that’s pretending that the employers can just raise prices because their costs increased. Which, of course, they can’t. If they could raise their prices because of cost increases and not suffer loss of sales and revenue, they could raise them just because they want more profit–and they would.

      You anti-libertarian pinheads never bother to think things through beyond the most simplistic, shallow counting on your fingers.

  15. James,

    You forgot another “powerful” but effective TOOL.

    Sending our boys and girls to war for another country with a one-way ticket…

    Please revise your roster.

    1. Oh it gets much better.. many come home sliced and diced and a great many jobs are ‘created’ in tending to their needs… excellent “stimulus”.

Comments are closed.

Sort By:

Refine Content:

Scholar

Additional Keywords:

Refine Results

or to save searches.

Open
Refine Content