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Tuesday, December 15, 2009

The Left and Cutting the Minimum Wage

Fox anchor Juliet HuddyThe liberals on were all aflutter today because, in a segment on Fox News, someone dared to raise the question of whether or not lowering the minimum wage would ease unemployment. Oh the audacity!

The idea of reducing the minimum wage to lower unemployment is based on the understanding that if the amount of money a company has to pay its employees is set at X, the number of people it employs is Y and the minimum amount each employee must be paid is Z, then the smaller Z is the larger Y can be. Which begs the question, is it better to work for less than the government-mandated minimum wage (which currently sits at $7.25 an hour) or to not work at all?

Let's turn to the Nobel Prize-winning economist (back before the Nobel Committee became a glorified cheer squad for liberalism), Milton Friedman for a fuller explanation of the minimum wage:

Of course, to understand Friedman's explanation of the minimum wage, one first has to move away from appeals to pathos - something which is utterly impossible for the Left to do. Nonetheless, if there were a single thing the government could do to decrease unemployment in this country without also further increasing the national deficit, it would be to decrease the minimum wage.

So, when the Left argues against lowering the minimum wage, one can't help but wonder: Why? Either it's because, in their economic ignorance, they see it as a cause for "social justice" or it's because they're being politically pragmatic and understand that the more people reliant on the government for sustenance, the more votes they can count on come election day.

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