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Wednesday, July 25, 2007
Terry Jeffrey :: Townhall.com Columnist
Pay Democrats the Minimum Wage Now
by Terry Jeffrey
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I suspect the way many viewers reacted to this week's Democratic presidential debate co-sponsored by CNN and YouTube depended on whether they generally see themselves on the taking or giving end of government transactions.

For those accustomed to taking from government, it was a tremendous night. For those accustomed to giving to government, it foreshadowed the nightmare to come if a Democrat is elected president.

During the debate, various candidates suggested increasing government by mandating universal health care coverage, health care coverage for illegal aliens, a massive increase in the minimum wage, a minimum salary for school teachers, more spending on public schools generally, cars that get 50 miles per gallon and even reparations for slavery.

They also suggested increasing government revenue by imposing a carbon tax on the U.S. economy, increasing taxes on oil companies, increasing the amount of personal income subject to the Social Security tax, increasing the tax rates on the top 1 percent of earners and increasing taxes for virtually everybody by terminating the Bush tax cuts.

An early defining moment came when former Sen. John Edwards of North Carolina, who became a multimillionaire by suing doctors, tried to establish his credentials as Taker in Chief, the Democrat most likely to use government to confiscate things from people.

"I think the people who are powerful in Washington -- big insurance companies, big drug companies, big oil companies -- they are not going to negotiate," said Edwards. "They are not going to give away their power. The only way that they are going to give away their power is if we take it away from them."

The "we" here, of course, is government. The "them" are the people who own insurance, drug and oil companies. That means stockholders. Edwards, in other words, wants to increase the power of government by diminishing the power of the many millions of citizens scattered all across America who are diligently saving and investing what they can today in the stock market so they won't have to depend on the government and Social Security tomorrow.

Another defining moment came when the candidates tried to outbid each other on the minimum wage. Again, Edwards anted first. "I would challenge every Democrat on this stage today to commit to raising the minimum wage to $9.50 an hour by the year 2012," he said.

Sen. Hillary Clinton of New York, who earned millions by selling a book about her life with husband Bill, outbid Edwards. "I put in legislation which said that Congress should not get a salary increase until they did raise the minimum wage," she said.

Gov. Bill Richardson of New Mexico pushed an even bigger stack of chips onto the table, managing to combine increasing the minimum wage with another classic cause for the Party of Takers: increasing spending on public schools. "I would have a minimum wage for all our teachers, $40,000 per year," he said.

Who would pay for these increased wages? In the case of federally subsidized, $40,000-per-year, public-school kindergarten teachers, it would no doubt include some $35,000-per-year workers who would rather send their children to Catholic, Christian or Jewish schools, where few teachers make $40,000 per year.

In the case of a massive jump in the private-sector minimum wage (which is now $5.85), it would be paid by both small business owners and their workers. The government-mandated increase in the cost of labor would diminish both the number of jobs small business created and the number of small businesses, period. There is one place, however, where the minimum wage could have a salutary effect: among the Democratic presidential candidates who are paid by taxpayers right now. "If you're elected to serve, would you be willing to do this service for the next four years and be paid the national minimum wage?" asked a YouTube viewer. Sens. Joe Biden of Delaware and Chris Dodd of Connecticut prudently declined -- suggesting they were struggling to get by on their senators' salaries of $165,200 per year. Other candidates, however, leapt at the opportunity to show their solidarity with the Taking Class. "Sure," said Sen. Hillary Clinton, the rich author. "Yes, I would," said Gov. Bill Richardson, the teachers' advocate. "I would," said Rep. Dennis Kucinich of Ohio, the ceaseless populist. "Well, we can afford to work for the minimum wage because most folks on this stage have a lot of money," said Sen. Barack Obama of Illinois, the Harvard lawyer. Good for them. But why should they wait to see if they are elected president? Nothing is stopping these candidates -- and any other Democratic officeholder who shares their views -- from refunding to government treasuries starting today whatever portion of their compensation exceeds the federal minimum wage of $5.85 an hour. Terence P. Jeffrey is the editor of Human Events. To find out more about him, visit the Creators Syndicate web page at www.creators.com COPYRIGHT 2007 CREATORS SYNDICATE INC.

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About The Author

Terence P. Jeffrey is the editor-in-chief of CNSNews

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©Creators Syndicate
Typical
I once asked a Mass. liberal, after he advocated higher taxes, if ever included more of his money than the tax returns demanded. Answer...a gasp and a NO!

Those people sicken me.

I'll make this easy.....
Loyal Democrat for President.

I'll take away the property and income of 49.9% of the people and give it to the other 50.1% if you elect me president.


$$$.
Other People's Money (O.P.M.) is the opiate of your masters.

Funny thing
Why didn't they REDUCE taxes on people making minimum wage, until their take home pay just about equaled what they'd bring home by making $7 bucks an hour under current tax rates? That is, if they're SO concerned with minimum wage earners.

In other words, instead of raising minimum wage, lower taxes on minimum wage earners. But no, that would take money out of governments pockets instead of the business owners.

TAXES AND WAGES.
Currently, wages are low, taxes are high. How can
people be expected to support their families? The attitude of "I got mine-up yours" does not cut it anymore. Henry Ford knew he had to pay a living wage, or his workers could never buy his cars. Do
we really want to keep people living like animals?
I guess so, if you read some the comments here.

minimum salaries for teachers
why do liberals give the teacher lobby so much attention and power?

If the liberals are going to go out and start giving minimum wages to occupations - I want $200K as a Stay-At-Home-Mom of three. LOL. As if that'll happen! (n.b. I'm not serious - it's a joke!)

Reality-check
The absurdity of the "living wage" argument is that they judge it by what it takes to raise a family of 3-4. With the fact that every minimum wage job is an entry-level one, who the hell tries to raise a family like that? And for those who do, why should their employers be punished because of their poor decisions?

The reality is that unless a worker can produce $5.85 worth of labor per hour, then they're not going to stay employed, and instead of little pay, they get no pay. And we wonder why there are fewer kids getting jobs in high school?

mamadeus
the point is that HENRY FORD made his decision, NOT the Federal government.

HR5970
why is it that DEMS never mention that this minimum wage increase they've "passed" for the working poor, was already, almost verbatim, passed, HR5970, in 07/2006 under a GOP US House majority by a vote of 230-180? HR5970 died because a group of US Senate DEMS couldn't see its tax breaks for small business to offset the effects of the minimum wage boost as acceptable and joined certain fiscal conservative GOP Senators in effectively killing the effort. this time around thought these same DEM US Senators embraced a tax break package for small business to offset increased minimum wage effects and attached the measure to a necessary piece of legislation.
the question being, why is it that the DEMS think they can get credit for doing something they should have done during the GOP majority years of the last Congress? because the media, the DEM propaganda wing, will trumpet their unique service in this latest action to the working poor, eventhough those same minimum wage earners could ALREADY be earning more!

minimum wage
you mean increasing min wage takes $ out of business owners pockets? I think not - it lets them get what they pay for - a US citizen instead of an illegal for a change. And a better worker. A few extra cents for an hourly worker makes a big difference...maybe they can enjoy a luxury cup of coffee on their break for a change.

"living" wage
AS I see it, pretty simple...if you only make minimum wage, don't have a family.. I can't currently afford a maserati, nor my own gulfstream jet; should I then petition the gov't for more guaranteed income? Surely I deserve these things as much as someone who's EARNED them? Some wise man once said"A democracy will only last until a majority of people realize they can vote themselves a share of the wealth of the minority, through government seizure of the minority's assets" Also, yes, those teachers who DESERVE it SHOULD be paid $40,000 a year- I'd guess at least 5% of them are worth that much. But of course NOT "jesu c" the frequent lib/dem poster hereabouts.

newsbyte
Sir, how much of your education was spent learning economics? Simple supply and demand should have been covered in any introductory course. Wages will reach equilibrium with the supply of qualified labor, setting "the going rate" without government interference. If you MANDATE a set wage, you will lower the supply of available labor positions or trigger inflation, rendering the"new" higher wage just as meager as before.If minimum wage laws REALLY were a cure for poverty or lack of qualifications, why set the bar so low? Why not a minimum wage of $50 per hour? This way these unfortunates who worked a 40 hour week would at least "get by" on over $100,000 a year! Of course, a loaf of bread would cost about $25...

mamadeus
You're not supposed to earn a “living wage” from flippin’ burgers or taking movie tickets. These are entry-level jobs for teenagers and young people...or part-time jobs for those needing a little extra cash to make ends meet. However, thanks to the dems, many of these jobs will become history.

Believe it or not, free trade and capitalism actually work...everyone has the ability to earn what they deserve.

When your Big Mac meal starts costing you $10-12 each...or all the prices at your grocery store jumps 30%, will you still be “sympathetic”?


newsbyte
All those "minimum wage" employees at the coffee shop also get a raise...the coffee prices rise at an equal rate...nothing changes.

Mamadeus, newsbyte,
The only two people involved in setting wages should be the employer and his employee. "Fair" is defined as that which is equitable between two consenting parties. And, apart from what any given individual wants out of life, whose definition of "enough" shall we be governed by? You're not making "enough"? Then negotiate with your employer or find someone who will pay you what you think you're worth. Or go into business for yourself and see how many people will buy what you have to sell. It is none of your business how much money your neighbor makes, much less is it the government's. If you want a "living" wage, then "live" according to your means and do whatever it takes to improve your earning capacity. But keep your grubby hands out of my pocket.

Actually
The Demonicruds are a good selling point for outsourcing the Congress/Senate somewhere else--say to Muzaffarpur, India.
(1) The bulk of them are crooked (I specifically picked India's "crime-capital" for the location)
(2) As it is in India's poorest state, the wages (including minimum) would be lower.

So, outsource Congress/Senate to Muzaffarpur and pay them at PREVAILING minimum wage for the area!

Newsbyte
Except that now...I can no longer afford to stop for cofee 3 times a week. I must cut back to 2 days. When enough of us cut back to 2 days, It's not necessary to employ as many people.

java economics
When a decent size cup of coffee (a grande) costs nearly the same as an hour in minimum wage....so that the person handing it to you makes in an hour what your cup cost, gee, we are a wealthy nation, aren't we?
And how off topic has this discussion gotten? Mention coffee and everyone goes off tangent. So the govt has raised the min wage a small bit. It's not going to change your lives at all. Unless dropping a visit to coffee shop from 3 times a week to 2 is a hardship.

Java
Gee, I think cutting back to 2 coffee stops from 3 will be a hardship for someone....think about it.
I'm not all that worried for the economy as a whole with this increase, because, as with last time, the marketplace has already pushed the wage up. The worry is that some people will lose or not get jobs due to this- and they will be the very people the Dims claim to be helping.

Neither Bill Richardson
nor any other presidential candidate, or president for that matter, has ANY ability to say he or she would set $40,000 as the minimum salary for a teacher or for anyone else. The president is NOT the law-making body in this country. The Congress is. For anyone who thought there was a lot of public noise about the amnesty bill -- just wait till some president decides that $40,000 per year is the minimum teaching salary and watch the public noise that follows. There are lots of working people who don't make close to that -- and they work 12 months of the year, not 9. (Besides which -- did I miss something? When did education cease to be a locally decided and locally funded service???)

Terence Jeffrey is 100% on target -- how about the Senators who say they would work for minimum wage start giving back, RIGHT NOW, the difference between their salary and what a minimum wage salary would provide. You know, as a show of integrity and good faith??? Hah! Let's see how many take up that offer.

I am a moderate conservative, and so I am actually in favor of a minimum wage. Minimum wage applies to entry jobs -- jobs like flipping burger and stocking shelves in Target -- and I think it's good that a minimum does exist for those jobs, since many times young people start with these jobs. To me, the problem really isn't minimum wage. It's that for the Democrats, there are no maximums on anything.

To Mamadeus:
"Wages are low, taxes are high."

What?? You'd better look again. Minimum wage earners pay hardly ANY taxes, and if they have even one kid, they get money BACK that they didn't pay in! That earned income credit, y'know. And as mentioned above - who makes minimum wage nowadays? Teenagers and part-timers.

My grandson's friend, 17-18 years old, got a summer job at Sheetz, no experience - and they started him out and $8.50 an hour! So where are these employers that are paying "minimum wage"??

And taxes are only high on the super-rich. And the Dems want to make them even higher. I'm an accountant, and I do taxes, so I do know what I'm talking about.

TYPO
...started him out AT $8.50/hour...

minimum 40 k for teachers
Before I started medical school in 2000, the average salary for a teacher in our local school district was 38,000. I had been an insurance adjuster for 11 years and was making 35k, and I had to work the whole year round. So I don't think the teachers would gain much sympathy if it were widely known what they do make.
I would be all for paying more to teachers to attract the best and brightest, but the problem is that, with the NEA and AFT etc, we would also have to raise the salary of the teachers who clearly not doing the job now.
I will await the beginning of the catterwalling now.

Bogus Min Wage
First of all it is not the government's right to set prices. In fact it is against the constitution to do so and many other things the socialist have been able to slip into our government.

However with all that said, most people are NOT on min wage. There are very few people who are and most of them are new employees just entering the workforce made up of teenagers for the most part. We are not talking about people who are supporting a family of 4.

Even then these people do not stay at a min wage for very long. If they are good workers they will be promoted or else find another job that will pay them more.

But when govt steps in and increases the min wage and paying people more than their worth, 1 of 2 things happens. Either some employees are let go and the company cuts back on their hiring thus denying a job to the early entry people who need it the most and/or they raise the prices of their goods to a level that might be more than demand and either we pay it or they go out of business and thus nobody has a job.

Arby
When you have that min wage that you favor, you are helping to eleminate the very jobs for young people that you speak of helping. Take a look at the food industry and how we can all recall how you would see some young kid running around bussing a table. That used to be really common along with other similar services. When the min wage went up, the food industry moved to eliminate the job all together and force the extra duty on the waitstaff. While some places still bus a table the old fashion way, it is RARE that I ever see it.

Jobs like that are going away because of the min wage. It hurts the very people you talk about helping and the people who need those jobs the most. The Democrats dont care because when those people are out of a job, unemployment goes up and more givernment solutions come in which means more dependant voters, more power, and more control.

Icedog and others
I wish I could find a link to the study I read recently, but to bottom-line it, the study stated that the majority of minimum wage earners studied over a five year period began earning more than minimum wage after less than a year of work. What this shows is that most folks considered a minimum wage job a stepping stone to higher wages. Even if they continued to "burger flip", most workers endeavored to meet their employer's performance benchmarks to earn a pay increase. To those folks who didn't get increases after at least a year, one has to ask them if they're not motivated to earn a raise, or do they need to look for a less stingy employer.

Mandatory increases will most definitely result in fewer jobs, and also fewer shift-hours offered for employees.

My great-grandpa didn't consider minimum wage jobs as beneath him, he considered them an opportunity to get started in life--a start that he used to eventually build considerable wealth. It's a shame that mandatory increases will mean fewer opportunities for younger workers.

Dirty secret
Not mentioned in the article or the thread so far is the dirty little Democrat secret regarding the minimum wage. Labor unions tie the wage rates in their worker contracts to the prevailing minimum wage. The higher the minimum wage, the better it is for this Democrat special interest group, the ones who remain employed, that is.

Olddoc
I completely agree - it makes me angry to hear/read comments saying that teachers need to be paid more. I'd certainly like to be making what THEY make for a 9-month job! And then our kids graduate, not knowing how to spell, punctuate, etc...as evidenced by some of the posts here...heheheheheh.

Granted, there are some really GOOD teachers - but too many nowadays are just filling in space and feeding on my tax dollars, filling kids' minds with liberal blather and feel-good "self-esteem" courses. *pfft*


Real World Blues
newsbyte
What do you do, really do. This is the real world
and your text book economics will not apply.
You are just too busy giving economic advice to another desk jockey. I'm sure you do a real job, right.
Can you perspire, I bet not.
In our business we have paid people a living wage. We paid $10.00 in 1985.
Try to support a family on minimum wage. If slavery was still legal you would still have a barn full.
Go give yourself an enema, your full of something.

Mamadues
Henry Ford did not go into business in order to get his workers to buy his cars. He didn't decide to pay them a high wage so they could afford one, he made munufacturing the car cheaper so they (and other middle class wage earners) could afford one.

The "text book economics" you deride work just fine in the real world. You can pat yourself on the back all you want for your $10 wages, but you will lose your business if you pay more than people produce. If you pay them much less, you will lose workers.

Edwards on Washington
He forgot to mention the other "people who are powerful" big union, big lawyer, and big special interest.

Minimum wage and illegal aliens
First mamadeus makes the point that wages are low and taxes are high. Why not lower taxes instead of raising wages? Keep in mind that a $1.00 increase in the minimum wage costs the employer approx. $1.07 once you include the employer’s share of FICA and medicare while the employee only gets approx $.93 once you subtract the employee’s share of FICA and medicare. So in order for it to be cost effective for the employer to keep the employee at the increased minimum wage the employee must increase productivity by $1.07 an hour while only receiving $.93 of the increase. Why not just make minimum wage workers exempt from the employees’ share of these taxes? This would give them an automatic wage increase of about 7%, (double the percentage increase for the military in the current appropriations bill). I would go so far as to make those making 150% of the minimum wage exempt if they are the primary income earner in their household.
Second, the law of supply and demand is one law that cannot be repealed by anyone of any political stripe. If you increase the supply of something (say, unskilled labor) without the demand increasing proportionally, the price paid for that thing (say, the wage paid to unskilled labor) will decrease. The 12 to 20 million mainly Mexican illegal aliens here in the US are primarily unskilled workers. Their presence artificially increases the supply of unskilled labor, suppressing the wages of legal (mainly American) unskilled workers. The federal government, by simply enforcing laws that are already on the books, could help minimum wage workers by removing this illegal competition for low skill jobs. These aliens do not take jobs Americans won’t do (even in the field in which they make up the highest percentage, agriculture, they are only 24% of the workforce) but they do the jobs at wages Americans cannot accept since Americans actually have to do things like pay taxes. Employers, obviously, prefer to pay a lower wage and pass on or avoid the additional costs such as FICA and medicare.

The Real World of Econ
For some of us who fell asleep in Econ class...here is a question: What is the true min wage? The answer will suprise you. Here is a hint: IT AINT $5.85 per hour. The answer is in "Basic Economics", by Dr. Thomas Sowell.
Min wage laws acutual hurts the poor, it forces business to look elsewhere for cheap labor. Hear that sucking sound...it is India, Mexico and China taking our jobs.

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