Upset About Unemployment? Thank A Democrat For The Minimum Wage
Ever since the (then) new Democrat Congress decided to jack up the minimum wage I’ve been pointing out that a higher minimum wage causes unemployment, particularly among low-skill, low-wage workers.
Or, put another way, the demographic that can least afford to go unemployed.
Today, in the midst of all the dark news about layoffs and unemployment all over the economy, it’s worth noting that the people who are hardest hit right now are the people at the bottom of the pay scale.
While every group of workers has been hit by massive layoffs, the recession has been particularly hard on the most vulnerable groups: young workers and minorities. Teenage unemployment soared to 21.6 percent last month, while the rate among Hispanics lept (sic) by 1.2 percentage points to 10.9 percent.
Now, in an economy as complex as ours, no effect has just one cause. When it comes time to make cuts, low-skill and low-wage workers are the easiest ones to make. But it’s not at all difficult to conclude that because Congress artificially inflated the cost of low-skill labor the situation is being needlessly exacerbated.
Proponents of the minimum wage argue over and over again that by mandating higher wages for those at the bottom of the pay scale we make their lives better. I would say that by inflating the price of low-skill labor we diminish demand for low skill labor. Less demand for low skill labor means fewer jobs.
So which situation is better? Some jobs available at a lower wage, or no jobs available at any wage?



