Wednesday, August 21, 2013

Yatish Parmar - Real Stimulus Means No Minimum Wage

Yatish Parmar, a constitutional conservative and a fan of cereal, music, and free markets takes issue with those advocating for a minimum wage.

 Despite the politicians’ promise to raise the minimum wage to help minority workers, the effect of the law has hurt minorities the hardest. The media won’t report the shocking statistic that black teen unemployment was 41.6% in July 2013 (2), while the federal minimum wage law is the highest ever.

 But I’ll bet you didn’t know that before the U.S. adopted a minimum wage, the black unemployment rate was lower than the white unemployment rate, and after the wage was hiked multiple times in the 40s and 50s, black unemployment became double that of white unemployment.

 The government’s compassion didn’t spread to the laws of economics, but even after decades of evidence, the statists want to hike the rate further so that more minorities and youth can be helped by the government, instead of being helped by a job. Minimum wage defenders may argue that the state with the highest minimum wage law, Washington, has 6.8% unemployment and compared to the U.S., is relatively healthy. But Washington has no income tax or a corporate income tax. And being the only state on the west coast with that type of profile is going to lure business regionally and has. Washington may have a high minimum wage and lower unemployment rate than California, but the residents of Washington keep all their money and businesses aren’t as punished as they are in neighboring states.

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