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Thursday, October 24, 2013

Derpin' 2: Electric Boogaloo- Min Wage Debate Redux

Behold part 3 in my continuing series to expose Team Blue talking points. Again, the following exchange is based on real conversations.

A: The minimum wage is unnecessary and increases unemployment.

B: You heartless, money-grubbing bastard! Without the minimum wage, we'd all be working in sweatshops for a dollar a day!

A: Really? Henry Ford doubled the wages of his workers in 1914 because it was cheaper to pay them more than pay the costs from high turnover. That was before any minimum wage laws. At that time, US factory workers were the best paid in the world.

B:  Working people with families deserve a living wage!

A: Less than 3% of American workers earn minimum wage. Almost all of them are high school or college students working part-time for pocket money.

B: Companies can afford to pay more. Look at the obscene salaries CEOs make.

A: If you make anything more expensive, you create an incentive to buy less of it. If you make unskilled labor more expensive, you create an incentive to buy less of it. Do you think gas stations or consumers would benefit if they government if the government set a minimum price for gasoline?

B: There plenty of states and countries that have high minimum wages and low unemployment.

A: The 5 states with the highest unemployment have the highest minimum wages. Ditto for all the countries. Singpore has no minimum wage and the lowest unemployment in the world at 2.5%. Switzerland has no minimum wage and its unemployment rate is 3%. Hong Kong had no minimum wage until 2010 and its unemployment rate was during that time was also less than 3%. During the Coolidge years, the US had no minimum wage and an unemployment rate of less than 2%- the lowest in US history.

B: You're a racist.

A: I knew that was coming. Say, did you know the unemployment rate for black teens in the US has gone up in tandem with the minimum wage? The minimum wage hurts black people more than any other group. Doesn't that mean the minimum wage is racist?

B: I'm taking my ball and going home! 

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