Monday, December 23, 2013

Not again! The Clamor for a Minimum Wage Hike

Here in Pennsylvania there are various voices from county courthouses to the General Assembly to the State Auditor General clamoring for a hike in the minimum wage.  On the national level President Obama has joined in the song.  He even joins in that part of the chorus that proclaims $10.10 is the equitable level.

Yes, believe it or not we are back to fighting this old, discredited idea from the liberal playbook.  I think it must be part of the liberal bylaws that this nutty government intrusion into the marketplace must be foisted on America every five or so years no matter what the economic conditions.  We hear  idiotic things like (e.g, from Auditor General DePasquale) making hourly wages greater than $7.25 would boost the state's economy and provide an alternative way to help the government's long-ailing bottom line.

I don't want to get side-tracked, but let's dismiss the idea of raising funds to help the poor state's bottom-line.  If it is "long-ailing" it is because it spends too much, not because it needs more money coming in.

Democrats in the state House introduced legislation last month that would increase minimum wages to $9 an hour and then one year later raise it to $10.10.  Obama would be proud.  Auditor General DePasquale argues that Pennsylvania needs to keep pace with Ohio and New Jersey, which are both boosting their minimum wages next year.  Keep pace? With what? Loss of jobs and wrecking already poor economies?  Oh, and shouldn't you being doing audits or something, Auditor General DePasquale?

Liberals will tell us the minimum wage rate of $7.25 hasn't been raised in "x" many years (insert the current time frame per the liberal bylaws), hasn't kept up with inflation, and you can't support a family at these meager wages. Blah, blah, blah.  Then we conservatives have to counter with the facts (don't you hate that): the minimum wage is not meant to support a family, most people earning it work part-time, are young, are unskilled, are just entering the workforce, are in training, etc.  We point out the number of years since it was last raised is irrelevant because it was a stupid thing to do back then, and why would we want to place another government imposed drag on a moribund economy at this time?

Economists in their right mind (I admit there ARE many who are not) say that if we make it difficult for a person to find a starting (i.e., minimum) wage job - because employers have to limit the number of hires at the new artificially high rate - then we have constructed an even greater hurdle for the person to enter the workforce, get the necessary training, and work their way up to a career-type of job.  It is true some people will be hired at the increased minimum wage, but many people who might have been hired will join the unemployed (or in Obama's America will join those who quit looking).

You know, the sad thing, I believe, is that most people advocating for raising the minimum wage know it will not help those they purport to care for in a kindly-government-knows-best sort of way.  They know it will likely hurt the overall economy and limit the number of unskilled jobs available.  It will make it look like they care.  And in the liberal playbook what better play to call?  They care and obviously anyone against raising the minimum wage doesn't care and just wants to keep the poor down.

It is very effective, politically. (Especially at the national level where the liberals have a great need to change the subject and get the Republicans back to defending against charges that they are mean and don't care!) Republicans are afraid to address the issue because they know they will be painted as selfish and uncaring, regardless of the real economic consequences of artificially setting wage rates.  Auditor General DePasquale (aren't you doing audits yet?) said, "I believe if it came up in the House or the Senate it would pass. I think it is a very hard thing to vote against."  He's probably right.  We know we can count on politicians to do the thing that feels good instead of the right thing.

A National Journal poll released recently found 71 percent of respondents nationwide supported boosting the federal minimum wage, with only 28 percent saying it could hurt the economy.  That's what happens when leaders fail to make the case with the facts and let the people pleasing and/or fear-mongering continue unchallenged.

I know, we get tired of arguing the same points against the same knuckle-headed ideas.  What is the alternative?  Just as every generation must fight again for their freedom, conservatives must be willing to counter the periodic feel-good nonsense from the Left with hard economic realities.