Townhall.com, Where Your Opinion Counts
Talk Radio:   Bill Bennett   Mike Gallagher   Dennis Prager   Michael Medved   Hugh Hewitt   
BREAKING NEWS  LeftArrow - Townhall.com : Conservative, Political, Republican   RightArrow - Townhall.com : Conservative, Political, Republican  
Columns, funnies & more in your inbox!
  • Check the boxes and send us your email address to receveive your free newsletter
  • Your daily must-read of conservative columns, cartoons and news. Coulter, Sowell, Krauthammer and more.
  • Townhall.com’s weekly inside scoop on what’s happening behind the scenes in the world of politics. When news breaks, we report.
  • Signup to receive the latest daily Townhall cartoons
Tuesday, August 08, 2006
Thomas Sowell :: Townhall.com Columnist
A glimmer of hope
by Thomas Sowell
Vote on It:
Average Vote:
[+] Text [-]
 
 
Poll
Was the Copenhagen Global Warming Summit Walk-Out a Win for the U.S.?


In France, where the national unemployment rate is 10 percent, the unemployment rate among workers less than 26 years old is 23 percent. Among young people from the Muslim minority, the unemployment rate is even higher.

In the United States, the group hardest hit by minimum wage laws are black male teenagers. Those who refuse to admit that the minimum wage is the reason for high unemployment rates among young blacks blame racism, lack of education and whatever else occurs to them.

The hard facts say otherwise. Back in the 1940s, there was no less racism than today and black teenagers had no more education than today, but their unemployment rate was a fraction of what it is now -- and was no different from that of white teenagers.

What was different back then? Although there was a minimum wage law on the books, the inflation of that era had raised wage rates well above the specified minimum, which had remained unchanged for years.

For all practical purposes, there was no minimum wage law. Only after the minimum wage began to be raised, beginning in 1950, and escalating repeatedly in the years thereafter, did black teenage unemployment skyrocket.

Most studies show unemployment resulting from minimum wages. But a few studies that reach different conclusions are hailed as having "refuted" the "myth" that minimum wages cause unemployment.

Some of these latter studies involve surveying employers before and after a minimum wage increase. But you can only survey employers who are still in business. By surveying people who played Russian roulette and are still around, you could "refute" the "myth" that Russian roulette is dangerous.

Minimum wage laws play Russian roulette with people who need jobs and the work experience that will enable them to rise to higher pay levels. There is now a glimmer of hope that more people are beginning to understand this, despite political demagoguery.

1 2
| Full Article & Comments | < Previous
Share:
Vote on It:
Average Vote:
 
About The Author
Thomas Sowell is a senior fellow at the Hoover Institute and author of The Housing Boom and Bust.
 
TOWNHALL DAILY: Sign up today and receive Thomas Sowell and Townhall.com's daily lineup delivered each morning to your inbox.
 
©Creators Syndicate
It's not just wages
Least us not forget the cost of labor is not just wages. The marginal productivity of a wage earner must exceed all expenses of hiring workers including; Social Security; Medicare; unemployment and disability insurance; and all other mandated expenses. It’s much higher than $10.

Minimum wage
The minimum wage is such a good idea it should be made $300.00 per hour. What do you mean, you might lose your job?

Another way to raise average wage rates is to simply eliminate those people who make less than $10.00 per hour. Come to think of it, isn't that exactly what the minimum wage does? Sort of like sawing off the bottom rungs of the economic ladder!
Sign Up to Post Your CommentsSign Up to Post Your Comments
If you are already registered, click here to login. Otherwise, please take a few seconds to register with Townhall.com. Once you sign up, you’ll be able to post your comments immediately, use the action center, get podcasts, and more!
Note: Fields marked with a red asterisk (*) are required.
Salutation:
First Name:
*
Last Name:
*
Email:
*
Nickname:
*
Note: Nick name will be shown when you post comments.
Address 1:
*
Address 2:
City:
*
State:
*
Zip:
*
Phone:
      
Your daily must-read of conservative columns, cartoons and news. Coulter, Sowell, Krauthammer and more.
(Bi-Weekly) We highlight the best opportunities from our partners for surveys, action items and more.