More government bunkum debunked

John Mauldin has a good piece out this week on employment trends.

Boomers Are Breaking The Deal

Other than Mr. Mauldin’s conclusion, the research also and finally puts paid to the ridiculous idea that a minimum wage is necessary to increase the standard of living of those workers that are less skilled.

Here’s a graph created by The Georgetown Center on Education and the Workforce and reported in Mr. Mauldin’s post .

The minimum wage was and always is a piece of bunkum peddled by unions and politicians alike exclusively for political gain. The arithmetical truth of the minimum wage particularly in developed economies, is that it keeps the lowest skilled out of the workforce and thoroughly dependent on government hand outs. In turn, this ensures a captive pool of voters that favor the most ruinous policies thus contributing to the apparent need for perpetually expanding government.

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2 Responses to “More government bunkum debunked”

  1. Jim Says:

    Remember that the minimum wage also acts within the licensing and zoning and other labor laws of the land; the regressive structure of employment / entrepreneurship is actually much worse than just implied by the minimum wage.

    We now have the ironic situation where the unemployed mother cannot sell baked muffins out of her house, or grow vegetables for resale without government approval and legal advice, while the local bank can hypothecate her savings at zero interest rate.

    Even as a small example, when I was 17 I could work 50-60 hours a week and make enough money to pay for my college tuition even on a minimum wage salary. Nowadays, employers must pay overtime and therefore the strategy is to hire more people all working part time at less than 40 hours a week. That forces anyone who wants to work to find two jobs instead of one, and then coordinate the work hours between employers.

  2. Patrick Donnelly Says:

    In a kleptocracy, where the slaves are needed to make maximum profit for their masters, rigged “minimum” wage is necessary for equal competition in a rigged market.

    Once the money machine breaks, minimum wage is slowly replaced by better than living wage as the market briefly reasserts itself, before being diddled again by those in charge of the money machine. In times of recovery from Depression, single parent earners can support spouse and family. Until then, we reap the whirlwind of those who see nothing wrong with fake economics.

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