Monday, March 24, 2014

Minimum Wage Legislation Based on "Principle As Old As the Bible"?

I wouldn't be surprised if Governor Pat Quinn of Illinois actually believes that "you shall not make less than $10.65 per hour" is the 11th Commandment:

Gary North dismantles Gov. Quinn's argument:
There is nothing in the Bible that indicates that the civil government has an obligation to achieve the impossible. If it is impossible for a civil government to pass a law that will make every employee a member of the middle class, simply because the government is incapable of making people sufficiently productive to enter the middle class, then anything that the government does in an attempt to make everyone a member of the middle class will backfire. It will increase the number of people who are poor. This is because employers will not hire them.

A minimum-wage law is, above all, a law that says that somebody who is willing to work for less than the minimum wage will not be allowed to do so, because the legislature has made such a transaction illegal. It restricts employers from making offers to employ people at less than the minimum wage. So, those people whose output is not sufficient to warrant paying them the minimum wage will find that they must either move outside the jurisdiction of the legislature, or seek employment in the black market, or go on welfare.

Probably they will go on welfare. They will figure that it's better to get something for nothing (welfare) than getting nothing for nothing (unemployment without pay). They are, in short, a lot smarter than those members of Illinois legislature who vote for a minimum-wage law. Those politicians really do believe that you can get something for nothing. You can get paid for output that you do not have the ability to produce.

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