Chris Christie and Republicans Should Read this Minimum Wage Book
There are ten unavoidable problems with a living minimum wage from 100% waste of your money to millions unemployed according to new book.
“I’m tired of hearing about the minimum wage,” Gov. Chris Christie (R-N.J.) said during an event at the Chamber of Commerce. “I really am. I don’t think there’s a mother or a father sitting around the kitchen table tonight in America saying, ’You know, honey, if our son or daughter could just make a higher minimum wage, my God, all of our dreams would be realized.’ Is that what parents aspire to?”
“Something for nothing, such as a minimum wage pay raise or a tax cut, may poll well, and politicians get tired of hearing their opponents sell the public a free lunch at their expense.” Dr. Steve Baba said. “But the solution is not to mock people who may literally need a free lunch, but to explain who pays for the expensive “free” lunch.”
The first problem with a high minimum wage is that millions more people will be unemployed even if the number of jobs remains constant, the economist states in his book. Second, high-cost labor will be used at a too-high minimum wage, reducing total output.
Third, there will be discrimination against the disadvantaged because nobody will hire disadvantaged labor when better workers can be hired at the same wage. Fourth, in the long run, at a $10 or $15 minimum wage, more people will choose to become or stay minimum wage workers for life, reducing total output.
Fifth, there will be job lock and few minimum-wage job openings. People will be locked into whatever minimum wage jobs they find, even if it’s the worst jobs for them.
Sixth, when jobs are difficult to find, there will be wasteful rent-seeking job search costs. Seventh, the competition for the limited jobs will lead to unethical rent seeking such as the casting couch when some job seekers will do anything to find work.
Eighth, a high minimum wage will knock the first step off the job ladder for people who need it the most. Ninth, there will be reduced job training for everyone.
Tenth, the minimum wage is very inaccurate redistribution. Some of the poor will gain; some of the poor will lose. Some of the rich will gain; more of the rich will lose.
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