Friday, February 15, 2013

Economic Logic in the NYT?

Mark Perry notes a shocking, truly shocking, editorial in the New York Times on a topical issue of the day.
There’s a virtual consensus among economists that the minimum wage is an idea whose time has passed. Raising the minimum wage by a substantial amount would price working poor people out of the job market. Most important, it would increase unemployment: Raise the legal minimum price of labor above the productivity of the least skilled workers and fewer will be hired.
If a higher minimum means fewer jobs, why does it remain on the agenda of some liberals? A higher minimum would undoubtedly raise the living standard of the majority of low-wage workers who could keep their jobs. That gain, it is argued, would justify the sacrifice of the minority who became unemployable. The argument isn’t convincing. Those at greatest risk from a higher minimum would be young, poor workers, who already face formidable barriers to getting and keeping jobs.
The idea of using a minimum wage to overcome poverty is old, honorable – and fundamentally flawed. It’s time to put this hoary debate behind us, and find a better way to improve the lives of people who work very hard for very little.
Hit the link to Perry's blog for the punch line.

Reading this I couldn't help put recall the character of Danny Vermin in the classic movie, Johnny Dangerously.  "The New York Times was logical once.  Once!"


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