Minimum Wage: Good Intentions Gone Wrong?
Is minimum wage a ‘feel good measure?’
- Duration 4:13
- Date Sep 30, 2011
Is minimum wage a ‘feel good measure?’
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This transcript is automatically generated
The problem with the minimum wage is that it as you said it's an example of good intentions gone wrong.
Everyone wants to help -- Briscoe you know you get ahead of the government says you must you pay workers UX amount.
What that means is no -- will hire an employee -- less productive than that right now the federal minimum wage is 725 an hour.
So if you're TH worker -- efforts will only -- five dollars an hour to lead the earnings the company what that -- -- you just can't get a job.
And the -- that long congress not just okay today you don't get the job.
But what is the value -- minimum wage jobs but primarily on the job training and skills.
That's what it saw us off that bottom rung of the -- latter can prevent the workers from getting the job that would enable them to get the skills and experience to get a higher paying job later on in the future.
So how -- you fix the situation then I mean is this isn't a bad idea for all parts of the country because I mean in the south you have.
A lot more areas where you have small businesses that depend on just being able to pay a lower wage and -- as they -- -- they pick that up and pay more.
Well don't say it again that's another problem with the minimum wages its its a national level.
So appearance say Mississippi seventh -- -- five an hour.
I'll buy to a lot more than it does say in downtown New York City we've got the same idea minimum -- at the -- the federal level across the entire country.
And so -- you've got unity is some areas which are much lower cost of living which are stuck with the same uniform federal standard so it's it's much more harmful.
And again -- the problem is if you're saying if you're low productivity worker you can't they have an entry level job and -- at least this productive.
-- what that prevents you from doing is getting the race two thirds of minimum wage workers get a raise within a year you don't stay on the minimum wage forever.
He's still leave you start there you -- skills -- become more productive as you become little more productive you weren't a race.
Raise the minimum wage you take away that opportunity for many workers interest thing so.
-- -- repeal all of the federal minimum wage.
I think there should be flexibility for states to set up their own minimum -- So that if you're a very low cost of living stay at the net you can say all right will there will have little or minimum wage we're gonna evidence at a level that doesn't do -- damaged our update and how right now it's only one way flexibility you can have a higher than the federal minimum that you can't have a lower and that doesn't work and how many -- cost of living areas and.
You know -- mr.
-- the problem though and in some of the argument against doing that very thing is that then you have a situation where.
If there are no jobs in -- state and you go someplace else to try to earn a living and maybe that's someplace else costs a little bit more money that they.
Don't have as competitive -- can minimum wage.
You're it has stuck in the middle leste where I am -- their their jobs and and I hope that something will open up for an election or a little bit more do -- Put my family in harm's way by moving in and possibly earning -- less -- that isn't guaranteed.
Well this isn't gonna -- actually that many workers say is only about 4% of all employees in the US.
I earn the minimum wage so what -- accomplished I mean it doesn't save the government money I mean what does that accomplish.
Is it looked -- -- that's basically feel good measure will get to -- feel better that at -- minimum wage.
The problem is it doesn't reduce poverty it doesn't help the workers are tending to help.
And by song off that bottom rung of the -- latter reducing the number of entry level jobs to prevent workers from getting the experience that would enable them to have to get a raise and and get ahead on the road effort since.
It's a feel good measure but doesn't reduce poverty.
What you know we have -- a screen that we can put up for everybody to be able to see this I don't know if they floated this by before about it but I wanna put it up again federal minimum wage rates over time.
Just to get an idea of what we're talking about a 1964.
It was a dollar 25 an hour.
Ten years later it had only gone up 75 cents to two dollars an hour.
In 1984 we saw a big jump to 335 an hour -- we have -- to put up on our screen I think we do.
In my notes that we now I'm not a tiny it's -- 2000 forward 515.
shark it's not like it's all that much I don't understand how it -- small businesses explain that to me.
Get -- for most workers -- -- well above this in 95 plus percent of the -- are not affected but if you're say.
A teenager in high school -- not very productive on the job.
And so if you can only creates a six dollars an hour worth the value -- -- He's not gonna hire you for 725 an hour he's not gonna take a loss to hire a low productivity workers.