slimreaper
Sannin of the Scrolls 📜
- Joined
- Aug 1, 2012
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Most people believe minimum wage laws help poor people get more money, on the contrary... they were/are a way to keep minorities from working for cheap and acquiring some skills that would be useful in negotiating for higher wages
The last year when the black unemployment rate was lower than the white unemployment rate was 1930, the last year before there was a federal minimum-wage law.
The following year, the Davis-Bacon Act of 1931 was passed, requiring minimum wages in the construction industry. This was in response to complaints that construction companies with non-union black construction workers were able to underbid construction companies with unionized white workers (whose unions would not admit blacks).
What a coincidence
[video=youtube;x-BGi4NIFww]https://www.youtube.com/watch?v=x-BGi4NIFww[/video]
walter williams and milton friedman illustrate those points here^^
and if videos aren't your thing
walter williams goes in depth in this article
"The people who are harmed by an increase in the minimum wage are low-skilled workers. Try this question to economists who argue against the unemployment effect of raising the minimum wage: Is it likely that an employer would find it in his interests to pay a worker $15 an hour when that worker has skills that enable him to produce only $5 worth of value an hour to the employer's output? Unlike my fellow economists who might argue to the contrary, I would say that most employers would view hiring such a worker as a losing economic proposition, but they might hire him at $5 an hour. Thus, one effect of the minimum wage law is that of discrimination against the employment of low-skilled workers."
The last year when the black unemployment rate was lower than the white unemployment rate was 1930, the last year before there was a federal minimum-wage law.
The following year, the Davis-Bacon Act of 1931 was passed, requiring minimum wages in the construction industry. This was in response to complaints that construction companies with non-union black construction workers were able to underbid construction companies with unionized white workers (whose unions would not admit blacks).
What a coincidence
[video=youtube;x-BGi4NIFww]https://www.youtube.com/watch?v=x-BGi4NIFww[/video]
walter williams and milton friedman illustrate those points here^^
and if videos aren't your thing
walter williams goes in depth in this article
You must be registered for see links
"The people who are harmed by an increase in the minimum wage are low-skilled workers. Try this question to economists who argue against the unemployment effect of raising the minimum wage: Is it likely that an employer would find it in his interests to pay a worker $15 an hour when that worker has skills that enable him to produce only $5 worth of value an hour to the employer's output? Unlike my fellow economists who might argue to the contrary, I would say that most employers would view hiring such a worker as a losing economic proposition, but they might hire him at $5 an hour. Thus, one effect of the minimum wage law is that of discrimination against the employment of low-skilled workers."
