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Tuesday, July 30, 2013

$15 minimum wage will cause unemployment

Any minimum wage is unnecessary - every government mandated wage causes unemployment.  Government regulation is inflexible; every job requires flexibility.

In New York:

Fast Food Forward claims they have published a petition to increase their wage to $15 per hour and form a union.  Link

When a production company cannot be relatively confident about the stability of its future costs, it is not going to invest.  There will be no jobs growth.  Real people who have somehow managed to save money will not want to risk it.

Jobs growth does not require the worker to get beaten up by company executives.  Fairness does not require the company to get beaten up.  Real jobs will grow when people get a fair market wage - which means easy to learn jobs will get lower pay and hard to learn jobs will get higher pay.


Fast Food Forward's hostility to a fair solution is palpable in their 'petition' text:

"To: The CEOs of Wendy’s, McDonald’s, Pizza Hut, Domino’s, KFC, Taco Bell, and Burger King

"I stand with the fast food workers of New York City who are fighting for $15 and the right to form a union without interference.

"I believe that, here in America, everyone who works hard should be able to afford basic necessities like groceries, rent, and transportation for themselves and their families. Supporting your employees and their families with living wages [a foggy obfuscation at best - BQ] is a critical contribution to achieving this vision."


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Fast Food Forward is trying to use the power of government to increase the power of the union bosses.  The workers have the right to form a union without interference, as current law stipulates.  The workers just don't seen Fast Food Forward as a way to a better life.  Read the Yahoo arrticle closely; only a "New York-based community action group" is mentioned in the protest.  The story does not mention restaurant workers on the picket line. 

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This is one of the ways America is losing its edge over other economies.  The political power bosses have found an easy ride for themselves by pretending to complain for the masses.  The union bosses always make out for themselves.

America is reversing course and becoming stupid just as the governments of formerly backward economies have started making industrial sense.  Governments like China's have proceeded truly to modernise their infrastructure.  It is now possible for a producer to be relatively confident about the stability of its electricity supply ever since the completion of the Three Gorges dam project.

Don't get me wrong -- China made the Three Gorges project work by massive dislocation of its people.  There were massive violations of the right of people to live as they have for generations. 

You can even compare this massive unfairness to the insistance Fast Food Forward insists upon:  Why do they think they have the right to insist their current employers guarentee them a job at increased wages?  If they don't like the pay, they can go get another job.

Inevitably people compare the Fast Food CEO's salary to the menial table busser.  The comparison is fruitless.  The table busser doesn't have the ability to do the CEO's job.  That's all.

2 comments:

Income Insurance said...

There are a lot of factors other than minimum wage that causes unemployment. Lack of economic reform is one of them.

Bob Qat said...

Income Ins. Thank you for your remark, , but you have to admit that overpriced labor will not get bought. Minimum wage increases historically lead to lower employment.

If you intend to nationalize everything and call that economic reform, that has always lead to extremely high unemployment and much misery besides. there is no idea as bad as centralized planning to cause pain.