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Showing posts with label minimum wage. Show all posts
Showing posts with label minimum wage. Show all posts

Friday, June 30, 2017

Minimum wage updates: paging Mayor Jackson!



 art credit: The Tunnel Wall


The Washington Post reports that the state of Maine’s House voted on a bill to reduce the minimum wage for tipped restaurant workers. An earlier Cleveland Tea Party blog reported on Mayor Frank Jackson’s hopes of increasing the minimum wage for City of Cleveland employees.

Today, Thomas Lifson at American Thinker has more on the minimum wage debate:

Minimum wage laws are a perfect example of feel-good statism, in which the professed goal is noble, but the execution inevitably fails and makes things worse.  The state can no more repeal the law of supply and demand than it can the law of gravity.

But don't tell that to the Seattle City Council, which just commissioned a new study intended to get the answer it wants, from a scholar who has contended, in effect, that supply and demand don't really work at the bottom of the wage scale.  The wonderful thing about working with numbers is that by choosing baselines, time periods, and sample bias, you can find almost whatever you want.  As a graduate student who got a Ph.D. in sociology, I saw this clearly and was sickened by people openly proud of the ways in which they got to the conclusions they wanted for ideological reasons.  Nobel laureate Ronald Coase famously summed it up: "If you torture the data long enough, it will confess."

Will somebody tell Mayor Frank Jackson?
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Monday, June 26, 2017

Mayor Jackson proposes increase to minimum wage for Cleveland employees


Photo credit: Washington Retail Assoc.


Cleveland.com reports that Mayor Frank Jackson intends to raise the minimum wage for City employees, so that in order to

raise up the earning power of the bottom end of the workforce. 

The change would affect as many as 500 employees in a wide array of jobs, ranging from clerical and custodial staff to park and recreation workers to police and fire cadets. The workers are both full time and part time, union and non-union. 


InfoWars reports on the actual results of the city of Seattle’s decision to raise the minimum wage:

Helping the “forgotten man” was an important and successful message for President Donald Trump in his election campaign.

He tapped into the anxieties of many Americans who are struggling to find work and are watching as traditional industries disappear or are gobbled up by automation.

While some of this development has been natural, much has been artificially created by bad policies. In particular: the minimum wage.

A bombshell report was released Monday about the impact of minimum wage hikes in Seattle, Washington. The study, conducted by economists at the University of Washington, showed that minimum wage laws significantly decreased employment for lower-income workers.

Additionally, the report found that average hours for low-income employees had also declined since Seattle’s $13 minimum wage law began being implemented in 2015.

Another idea that sounds good at first, until you consider the consequences, both intended and unintended. Speaking of consequences, elsewhere we read that Jeff Bezos’s purchase of Whole Foods will be followed by replacing employees with robotics in the warehouse.
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Thursday, September 22, 2016

Election issues 101

art credit: blog.press.princeton.edu

Thomas Sowell is one of my favorite columnists, not the least because of his ability to explain economics in ways that anyone can understand. He writes in plain English, marshals his facts, and it’s all but impossible to find a logic lapse in any of his arguments. While I may disagree with him on this or that, I admire him and respect his opinion. Always. So I am extracting his column from a recent Front Page column on “Essential Reads For The 2016 Election:  Books every American should be familiar with before voting this November”:

If you are concerned about issues involved when some people want to expand the welfare state and others want to contract it, then one of the most relevant and insightful books is "Life at the Bottom" by Theodore Dalrymple. It was not written this year and is not even about the United States, much less our current presidential or other candidates.
What makes "Life at the Bottom" especially relevant and valuable is that it is about the actual consequences of the welfare state in England — which are remarkably similar to the consequences in the United States.
Many Americans may find it easier to think straight about what happens, when it is in a country where the welfare recipients are overwhelmingly whites, so that their behavior cannot be explained away by "a legacy of slavery" or "institutional racism," or other such evasions of facts in the United States.
As Dr. Dalrymple says: "It will come as a surprise to American readers, perhaps, to learn that the majority of the British underclass is white, and that it demonstrates all the same social pathology as the black underclass in America — for very similar reasons, of course." That reason is the welfare state, and the attitudes and behavior it promotes and subsidizes.
Another and very different example of the welfare state's actual consequences is "The New Trail of Tears" by Naomi Schaefer Riley. It is a painful but eye-opening account of life on American Indian reservations.
People on those reservations have been taken care of by the federal government for more than a hundred years. They have lived in a welfare state longer than any other minority in America. What have been the consequences?
One consequence is that they have lower incomes than any other minority — including other American Indians, who do not live on reservations, and who are doing far better on their own.
The economic plight of people on the reservations is by no means the worst of it. The social problems are heart-breaking. As just one example, the leading cause of death, among American Indian boys from 10 to 14 years of age, is suicide.
As regards black Americans, there is much talk about the role of police. If you want a book that cuts through the rhetoric and confusion, and deals with hard facts, then "The War on Cops" by Heather Mac Donald does precisely that.
On racial issues in general, the best economic survey is "Race and Economics" by Professor Walter Williams of George Mason University. Just the table on page 35, showing unemployment rates among black and white teenagers, going all the way back to 1948, should demolish all the rhetoric and spin that tries to conceal the deadly effects of minimum wage laws on unemployment among black teenagers.
The rest of Sowell's column is here. The authors cited by Sowell are also regular contributors to print and online sources. So if book-length discussions are too time-consuming for a busy schedule, you can access columns by Dalrymple on welfare and poverty here, Williams on the consequences of minimum wages here, and McDonald on the war on cops here. And here’s a review of McDonald’s book on cops. 

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