It's the Pursuit That Counts - Opinions

It's the Pursuit That Counts - Opinions

More on the Minimum Wage Debate

From an earlier version of my column on the minimum wage, I highlighted the following:

Representative Rob Andrews (D-NJ) welcomed this new government decree to increase wages with the following:

“When the tax bill was on the floor, the wealthiest people in the country, people making more than $300,000 a year wanted massive tax breaks. It was their day, and they got it. I am sorry to disappoint the opponents of the minimum wage, but this is not your day. This is the day for the people who empty the bed pans, change the bed linens, sweep the floors, and do the hardest work of America. After a 10-year wait… this is their day.”

I don’t question the fact that Rep. Andrews has the ability to create beautiful prose, but I do feel that his rhetoric, which totally disregards the facts, is dangerous. First, he states that the tax cuts were passed for the very rich. However, this ignores the fact that the 2001-2003 tax cuts lowered the average tax bill of those taxpayers earning below $50,000 by 47%. This decrease was larger than the decrease of the middle to upper middle class which saw a cut of only 20%. He also misleads us about hospital workers who ‘empty (our) bed pans.’ In fact, only 1.8% of hospital workers earn the minimum wage. Obviously he did not fact check before he approached the house floor.

Minimum Wage Debate

Graphical evidence of my argument from my January 29th Eagle column:
















As you can see, there seems to be a correlation between the real value of the minimum wage and the unemployment rate for teenagers. This proves two points. First, the minimum wage affects mostly teenagers. And second, as the minimum wage rises, unemployment will rise along with it.

While this increase in unemployment should not be seen in the total unemployment rate, it should be interesting to watch the unemployment rate for teenagers over the next couple of years.