Thought for the day

April 29, 1999

The Republicans in Congress are trying to prevent a Democratic effort to increase the minimum wage by ONE DOLLAR over two years (yup, 50 cents per year). The black-hearted bastards can't come right out and say,

"Look, you're poor. Statistically, you don't vote Republican. And our biggest campaign contributors see you as cogs in the machine. Nothing personal, but SCREW YOU!

So, instead, they come up with mumbo-jumbo about how an increase in the minimum wage will actually HURT poor people because those poor, downtrodden business owners will just fire more workers to make up the difference. PLUS, if you don't get fired, it would still be bad for poor people to have more money because it would just cause inflation and that would erode their buying power.

Sadly for these bastards, history quickly disproves BOTH Republican lies. Inflation is holding near record lows and interest rates are historically low. This is enabling millions of Americans to own homes and enjoy the "American Dream."

But what about unemployment? Surely, if companies have to pay more for labor, they will fire people, especially teenagers, blacks, and other unskilled people right? Well, let's look at the numbers. I went to the source, the Bureau of Labor Statistics and checked to see if the folks at the "CATO" thinktank were right. Last time this subject came up, they wrote lots of papers to support the Republicans. They even said that if you raise the minimum wage, it will increase unemployment amongst teenagers and inexperienced people, especially blacks. But Congress increased the pitiful minimum wage anyway. What was the impact? Here are the charts...

Labor Force Statistics from the Current Population Survey

20 Years and up
All races

16 - 19 year-old
African-American

16 - 19 year-old
White
Year Qtr1 Qtr2 Qtr3 Qtr4
1996 4.8 4.8 4.6 4.6
1997 4.5 4.3 4.2 4.1
1998 4.0 3.8 3.9 3.8
1999 3.6      
Year Qtr1 Qtr2 Qtr3 Qtr4
1996 32.6 32.1 35.0 34.3
1997 33.0 33.6 30.7 32.1
1998 30.0 25.7 28.7 26.2
1999 30.0
Year Qtr1 Qtr2 Qtr3 Qtr4
1996 14.9 14.2 13.8 14.0
1997 14.4 13.5 14.3 12.2
1998 12.3 12.5 12.4 13.0
1999 12.3      
Series ID : LFS21001700Q
Seasonally Adjusted
Series Title : UNEMP. RATE - Civilian labor force 20 yrs. & over
Race : N/a
Sex : N/a
Status : Civilian Labor Force
Series ID : LFS21000830Q
Seasonally Adjusted
Series Title : UNEMP. RATE - Civilian labor force 16-19 yrs. Black
Race : Black/Negro
Sex : N/a
Status : Civilian Labor Force
Series ID : LFS21000810Q
Seasonally Adjusted
Series Title : UNEMP. RATE - Civilian labor force 16-19 yrs. White
Race : White
Sex : N/a
Status : Civilian Labor Force
Data extracted on: April 29, 1999 (12:25 AM) from the United States Bureau of Labor Statistics

So, let's see. As the last round of increases in the minimum wage went into effect (phased-in over multiple years) did unemployment go up for anyone? NO! They're lying! There have been normal ups and downs during this (and every) period, but in general, we are much better off now. That even includes twenty-somethings and black teenagers.

How is that possible? The Republicans sounded so sure and so logical when they told us that it would be a "bad thing" for poor people to earn more money. Sure, if a business was poorly run they might have to lay somebody off or cut hours as a result of having to increase pay by an astronomical $20 per week. But those inept companies might have had layoffs anyway. The fact is, businesses learn and become more efficient as they mature. Those that don't, fail. This is just a way to pass on the fruits of that improvement to the workers that deserve it.

So the next time some Republican tells you that you would be better off making less money, don't just laugh in their face and tell them they are full of crap, tell them to look at the facts.
Facts Fiction
Bureau of Labor Statistics CATO Institute
  Republican National Committee
  Yahoo's list of Fairy Tales

  Daniel Sherer

 


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