Thursday, November 09, 2006

The Minimum Wage

Raising the minimum wage is not about helping the poorest workers. It is about helping Democrat backers. Specificaly Labor Unions.

Some labor union contracts are based on the minimum wage; this produces a natural constituency to lobby for increases among union workers who typically earn far more than the minimum.
So the Democrat Contract includes payoffs for their special interests disguised as a "help the poor" measure.

Standard supply/demand theory says if you raise the price of labor you get less of it. You beat this with labor black markets or inflation. Of course the Democrats favor the labor black market because it brings in Mexicans who are Democrat friendly. Personally I'm against black markets in almost all cases. (the exceptions being things like stolen goods, and nuclear weapons - items that should be difficult to trade)

Oh well. We knew there would be a price to pay for Democrat control. This is one more item to add to the bill.

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