Minimum Wage Cruelty, by Walter E. Williams

Virtue signalling, preening, and patting themselves on the back, proponents of minimum wages rarely give a thought to those who lose their jobs. From Walter E. Williams at lewrockwell.com:

There are political movements to push the federal minimum hourly wage to $15. Raising the minimum wage has popular support among Americans. Their reasons include fighting poverty, preventing worker exploitation and providing a living wage. For the most part, the intentions behind the support for raising the minimum wage are decent. But when we evaluate public policy, the effect of the policy is far more important than intentions. So let’s examine the effects of increases in minimum wages.

The average wage for a cashier is around $10 an hour, about $21,000 a year. That’s no great shakes, but it’s an honest job for full- or part-time workers and retirees wanting to earn some extra cash. In anticipation of a $15-an-hour wage becoming federal law, many firms are beginning the automation process to economize on their labor usage.

Panera Bread, a counter-serve cafe chain, anticipates replacing most of its cashiers with kiosks. McDonald’s is rolling out self-service kiosks that allow customers to order and pay for their food without ever having to interact with a human. Momentum Machines has developed a meat-flipping robot, which can turn out 360 hamburgers an hour. These and other measures are direct responses to rising labor costs and expectations of higher minimum wages.

Here’s my question to supporters of higher minimum wages: How compassionate is it to create legislation that destroys an earning opportunity? Again, making $21,000 a year as a cashier is no great shakes, but it’s better than going on welfare, needing unemployment compensation or idleness. Why would anybody work for $21,000 a year if he had a higher-paying alternative? Obviously, the $21,000-a-year job is his best-known opportunity. How compassionate is it to call for a government policy that destroys a person’s best opportunity? I say it’s cruel.

To continue reading: Minimum Wage Cruelty

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2 responses to “Minimum Wage Cruelty, by Walter E. Williams

  1. Prof. Williams is correct and seems to have left out that in South Africa, many years ago, the way the Black population was controlled was by “minimum wage”. Because that part of the population, at the time, was on the lower end ot the wage scale, they suffered the most. The jobs that are at minimum wage are, largely, entry level jobs and those in such jobs are expected to move up relatively quickly (not necessarily in the business that they start) and past the minimum wage level which is more designed to teach good work behavior. Dr. Thomas Sowell explains this as well. These are very intelligent men and should be heeded.

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    • Interesting that you bring up Dr. Sowell. I had him for a labor economics class at UCLA, and he was one of the three brightest profs. I had at UCLA and Berkeley. He didn’t wait for anyboy to raise their hands, he just called on people at random, and woe to those who were unprepared. It was a thoroughly enjoyable and enlightening class.

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