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Nancy’s Tuna Surprise Proves That Minimum Wage Is Bad For Business And Low-Pay Workers
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Rob - 06:01am on 01/16/2007

From the Wall Street Journal today, in an article about Nancy Pelosi’s pandering to tuna companies based in her home district by exempting them from the minimum wage her party just passed, comes these details from over a decade ago about another liberal-friendly employer looking to be exempted from the minimum wage:

In 1995, the union-financed lobby, Acorn, sued California seeking exemption from the state’s then-$4.25 minimum wage. Acorn argued in its court brief that, “The more that Acorn must pay each individual outreach worker—either because of minimum wage or overtime requirements—the fewer outreach workers it will be able to hire.” As liberal economist Joseph Stiglitz once wrote: “A higher minimum wage does not seem a particularly useful way to help the poor.”

Indeed it doesn’t.  All the minimum wage does is reduce the pool of available funds businesses have to hire employees and drive up the price of the goods and services provided by low-wage workers.  Goods and services that are usually consumed by other low-income citizens.

So, in essence, all the minimum wage does is create fewer jobs for low-income families while making their cost of living more expensive.  So why do Democrats support this again?

Oh yeah, because it makes their union cronies rich since most union wage contracts are based on the minimum wage.


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