Friday 13 December 2013

Douglas Wilson's Letter From Moscow

In a Pig’s Eye

Blog and Mablog

The president’s Twitter account recently sent out this small dribbly contribution to the oceans of illiteracy that already exist out there. What’s another half pint?

Here’s how to improve our economy and create hundreds of thousands of jobs: #RaiseTheWage. http://OFA.BO/tXMYUq  pic.twitter.com/UDTcTSaqZJ

So here’s the comeback, and I must say that it is hard to type and snort at the same time.

So why don’t we just raise the minimum wage to a hundred dollars an hour and make everybody well off? Or, while we are in this compassion groove, why don’t we make it a hundred dollars a minute and make everybody fabulously wealthy? To reply that employers don’t have that kind of money to spare is to betray a churlish spirit, and is frankly unworthy of you. Why should we allow a detail like “not having the money” stand between us and the right thing to do?

But be a man. Run the thought experiment anyway.
Do this in order to throw in high relief what is actually happening every time we raise the minimum wage. If minimum wage levels “create jobs,” as the president’s infographic would have it, why in the world is he stopping at ten bucks an hour?

I will tell you what happens every time you raise the minimum wage. If you raised it to one hundred dollars a minute, virtually everyone in the world would see that you were doing it, and what a disaster you were being. But if you raise it to ten dollars an hour, you would be doing it in that passive aggressive way of yours with plenty of deniability if the consequences of your lunacy ever become too apparent.

Have I told you what happens every time you raise the minimum wage? You are raising the costs of legal labor. That is what you are doing. Whenever you raise the price of something, you are pricing somebody, in this case employers, out of the market. When you raise the minimum wage to one hundred dollars a minute, you throw absolutely everybody out of a job, pricing all employers out of the market, and everybody sees that it was you. But if you raise it to ten dollars an hour, the only people you price out of a job are black teenagers, who have no lobbyists representing them, and so the progressive stealth campaign against blacks proceeds on, unimpeded.

So somebody raised the price of legal labor. But if you are an employer who needs labor in order to function, you have three options before you. You can hire illegal labor at the true market rates, you can reduce your labor force via layoffs, or you can refuse to grow your force through refusing new hires.

Create new jobs? In a pig’s eye.

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