Wednesday, July 29, 2015

More Nonsense on the Minimum Wage

City after city in the US is in the process of passing laws to keep the poor in the modern big government prison.  Forcing the minimum wage to $ 15 will effectively eliminate any ladder of escape for millions of Americans currently trapped in poverty.  Those pushing this are probably pleased to have an increased constituency for all the welfare programs that they have foisted on the country. 

After all, if there weren't an increasing number of poor people, it would weaken the big government rationale.  Steadily increasing the minimum wage and indexing it will guarantee an ever growing number of poor Americans, denied by law the ability to gain the skills needed to escape poverty.  I guess the Clintons, Obamas and Warrens of the world see this as a good thing as they move from their limousines to their jet planes and back decrying their personal concern for the unseen poor.

Even more embarassing are the economists who argue that increasing the minimum wage has no or little effect on employment.  I suppose they think that raising a price has no effect on demand.  Is this what they teach in the classroom?  Are demand curves flat, after all, and unrelated to price?  Is this what modern academic economics has to to offer?

These are the same folks who argue that sciences are settled.  That no further discussion is required.  We know all we will ever know about things such as climate change.  Don't debate it.  Down with "deniers."  I suppose pretty soon we will hear that increasing the minimum wage's lack of impact on employment is a settled issue as well.  End the debate.

More and more academics have joined the political left in trying to silence discussion on matters that are really matters open to rational discourse and empiricism.  But, if you have already made up your mind, not to be confused by facts, then I guess you can get to the point where endless increases in a price has no effect on demand.  Great thinking.

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