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View Full Version : General Politics Does the minimum wage contribute to youth unemployment?


healthpellets
08-15-2010, 09:24 AM
So, does the minimum wage increase unemployment?

Laws that mandate minimum wages for employees block the lowest skilled workers out of the job market — a demographic largely made up by young people — and contribute to widespread unemployment among the group, economists contend. In order for an employer to justify making a new hire, they must have knowledge that the new employee will contribute more per hour than what they are being paid. So if the minimum wage is set at $7.25 (the current federal standard), unskilled workers who cannot produce that level of income for the company are more likely to be out of a job completely.

“When the government forces employers to pay more, it prices some workers out of jobs,” said Donald Boudreaux, an economist at George Mason University in Virginia. “When you deny teenagers the opportunity to work by pricing them out of the labor market with ridiculous legislation, you create a long term problem because you delay entry into the workforce.”


SOURCE (http://dailycaller.com/2010/08/15/unemployment-among-young-people-way-up-does-the-minimum-wage-play-a-part/#ixzz0wgUq4gDH)

You can also read Dr. Walter Williams' take on the minimum wage HERE. (http://townhall.com/columnists/WalterEWilliams/2010/04/14/minimum_wage_cruelty)

Which allows an American Samoan worker to have a higher standard of living: being employed at $3.26 per hour or unemployed at a wage scheduled to annually increase by 50 cents until it reaches federally mandated wages at $7.25? You say, "Williams, that's a stupid question. Who would support people being unemployed at $7.25 an hour over being employed at $3.26 an hour?" That's precisely the outcome of Congress' 2007 increases in the minimum wage. Chicken of the Sea International moved its operation from Samoa to a highly automated cannery plant in Lyon, Georgia. That resulted in roughly 2,000 jobs lost in Samoa and a gain of 200 jobs in Georgia.

HonestChieffan
08-15-2010, 09:33 AM
We should raise it. Then we can see if it gets us back to full employment.

healthpellets
08-15-2010, 09:39 AM
We should raise it. Then we can see if it gets us back to full employment.

oh god, we'd never get it back.

here we go, let's raise it to $12. isn't the argument for a living wage somewhere around $12? sure that would help.

HonestChieffan
08-15-2010, 09:45 AM
Seems logical that if setting it higher does not lead to fewer jobs as we often hear from the Pro Minimum wage left, that we should just keep raising it. Why wouldnt we?

healthpellets
08-15-2010, 09:47 AM
Seems logical that if setting it higher does not lead to fewer jobs as we often hear from the Pro Minimum wage left, that we should just keep raising it. Why wouldnt we?

alright, lets do it! who's comin with me?

Saul Good
08-15-2010, 09:56 AM
Let's raise it to $100,000 a year. Why stop at hourly rates? Everyone should get stock options and profit sharing, too.

HonestChieffan
08-15-2010, 09:58 AM
Let's raise it to $100,000 a year. Why stop at hourly rates? Everyone should get stock options and profit sharing, too.

Thats the spirit!

Hydrae
08-15-2010, 10:02 AM
Let's raise it to $100,000 a year. Why stop at hourly rates? Everyone should get stock options and profit sharing, too.

I have a great idea, how about a maximum wage that is also set at $100,000. That way everything will be fair for everyone.

healthpellets
08-15-2010, 11:18 AM
I have a great idea, how about a maximum wage that is also set at $100,000. That way everything will be fair for everyone.

that seems a bit high. maybe 60k.

HonestChieffan
08-15-2010, 12:03 PM
The higher the minimum, the greater the tax revenue will be....lets not be hasty

FD
08-15-2010, 12:03 PM
It raises youth unemployment and overall unemployment without a doubt. The minimum wage is a particularly blunt tool to accomplish the objectives its supporters wish to accomplish. Its always a bit depressing when they try to raise it.

HonestChieffan
08-15-2010, 12:08 PM
It raises youth unemployment and overall unemployment without a doubt. The minimum wage is a particularly blunt tool to accomplish the objectives its supporters wish to accomplish. Its always a bit depressing when they try to raise it.


Thats not acceptable.

Rain Man
08-15-2010, 09:12 PM
Let's raise it to $100,000 a year. Why stop at hourly rates? Everyone should get stock options and profit sharing, too.


It would also satisfy my curiosity about the taste of a $100 hamburger.


I guess I don't have a problem with some kind of minimum wage, because if you had no floor I think employers would push it down in unison. However, the talk about how minimum wage should be a livable wage is off the mark. Minimum wage jobs are generally supposed to be jobs held as entry-level positions by teenagers and other non-independent workers, or part-time jobs. If someone is an adult working a minimum wage job, they shouldn't be complaining and they ought to be training. It even rhymes. No one should be viewing a minimum wage job as a career.

BucEyedPea
08-15-2010, 10:49 PM
oh god, we'd never get it back.

here we go, let's raise it to $12. isn't the argument for a living wage somewhere around $12? sure that would help.

Living wage is worse than a minimum wage.

healthpellets
08-15-2010, 11:10 PM
Living wage is worse than a minimum wage.

it's the same damn thing, but higher.

funny thing is though, you simply can't run on this platform regardless of the logic or truthfulness. can you imagine your opponent's attack ads claiming you want to make everyone poor by taking away the minimum wage?

i can just see a townhall meeting where unemployed constituents say "how am i supposed to survive making less than the minimum wage?" and replying with "isn't a job at less than minimum wage better than your current situation?"