False Argument of Minimum Wage

Facts are indeed stubborn.  Given the economic facts we have seen continuously seen for decades regarding the minimum wage, it should be clear the argument is not about "working families"; but rather a political agenda. Once again, the minimum wage is not a wage designed to support "working families" and raising it reduces employment.

Over at Zero Hedge today, a chart showing retail trade offers a notable emerging difference between states that recently hiked the wage and those that held firm. Retail is most telling, as the indusrty has among the highest level of these type of workers.

Retail Trade/Chart via Zero Hedge

Again, raising the wage hurts the very people the propaganda tells us it will help.  In the macro, it reduces the efficiencies of firms, raising costs and restricting their abilities to add workers, which is an overall drag on economic production regionally and thus nationally.

Fast food workers recently went on strike to obtain higher wages, not due to their hard work on the job, but because of the perception that they deserve it and the corporate employer can afford it. In an interview with Business Insider economist, Paul Krugman thinks the overall costs of raising the wage would not cause as many issues as most think.  Krugman fails to recgonize the adminstration he advocates for has no right to direct the capital of private firms through social engineering. Economically, why cause any issues? Why not reduce encumbrances firms face limiting the obstacles faced in advancing growth? 

Unless, of course, you have other objectives.

Common sense would dictate that government intervention in this arena is designed to help the workers and help the economy grow, but that is a farce.  Government mandated wage levels, along with price controls, are impediments to growth.  Therefore, the goals are not economic, but politically driven, with the plans set forth in the Cloward and Piven Strategy the objectives.

Free market capitalism, with limited governmental restrictions on business, is without question the best path to prosperity.  Under the current administration, fees, taxes and government regualtions have increased while freedom and prosperity have decreased.

In the form of the old argument regarding the minimum wage, now you have an example of why.