There is a better alternative to raising the minimum wage

The U.S. Secretary of Labor Thomas E. Perez wants to raise the minimum wage.

In fact, the vast majority of Americans — 91 percent of Democrats, but also 76 percent of Independents and even 58 percent of Republicans — are in favor of raising the minimum wage.

This is an understandable position. After all, the gap between richest and poorest has grown very wide in recent years. But in my view, minimum wage laws are not good laws at all. That’s not out of lack of compassion for low-wage earners, or because I like inequality. That is because I think that there is a better way to achieve a decent standard of living for the poorest in society.

The minimum wage is a factor in creating unemployment. Despite what’s often said to the contrary, it’s true: Countries with no minimum wage tend to have much lower unemployment. Right now, America is suffering a serious deficit of jobs, with over three jobseekers for every available job. We need all the jobs we can get.


7 thoughts on “There is a better alternative to raising the minimum wage

  1. I’m sorry but you are way off base here. The fact is that there are plenty of people looking for jobs that will take the low pay. The true problem has been the continued loss of purchasing power of the fiat dollar due to inflation (too much printing!)

  2. I would rather experiment with the 15% of hourly workers who make less than 10 dollars per hour than take a chance with government redistributing more wealth in the name of income inequality. In general wadges are tax deductible. A 30% raise for minimum wage workers would go along way towards improving their self esteem not to mention melting away of growing resentment of capital.

  3. The entire economy is completely screwed-up. Seeing that the people at the bottom ALWAYS get screwed no-matter-what, seems reasonable that until the economy is fixed, nothing is getting better for the lower 90%.

    A super-abundance of available labor is a capitalist’s/fascist’s dream-come-true!

  4. How does your assertion there are ‘3 seekers per job’ square with Mike Rowe’s assertion there is a skills gap, and 600,000 unfilled blue collar positions?

    My guess is, there are 3 seekers for every mindlessly easy job of punching buttons on a fast food screen, which is why they pay so low.

    I can tell you, in the IT world, software developers are hard to come by. Companies like mine regularly employ thousands of immigrant contractors who have the skills many Americans refuse to learn.

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