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Townhall: The Cynics and the Minimum Wage

This weekend at Townhall, a recurring subject, but with a British twist: why support a minimum wage if it doesn’t do the good claimed for it? Maybe the backers don’t uniformly want the good. Could they want the bad?

Which brings up the question of cynicism. We who aim to help the poor, as opposed to those who advocate policy just make themselves feel good, should be immune from the charge of “cynicism.”

Even if we are often very skeptical of the politics and rhetoric surrounding “the minimum wage.”

Click on over, then back here for more reading:

  • Minimum Wage, Maximum Damage, by Jim Cox
  • “Reich is Wrong on the Minimum Wage,” by Donald Boudreaux
  • “A Simple Question for Minimum Wage Advocates,” by Donald Boudreaux
  • Last week’s Common Sense, “A British Puzzle,” that gave the short version of this weekend’s Townhall lesson.
  • For an overview of the main economic theories of wage-rate determination over the last 300 years, an economicconcepts.com article goes into some detail. It is better than Britannica’s account, for example, in that it does not give any credence to “the bargaining theory,” which, too often, assumes that prices do not really matter, are infinitely malleable by powerful negotiators. That just cannot be true. Prices have consequences. Wage rates do, too. They should reflect real supplies and real demands, so we can adapt ourselves to real human needs and not phantom wishes and hopes and dreams that can come to nothing.
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Thought

Thomas Jefferson

“…he [King George III] has waged cruel war against human nature itself, violating its most sacred rights of life & liberty in the persons of a distant people who never offended him, captivating & carrying them into slavery in another hemisphere, or to incur miserable death in their transportation thither. This piratical warfare, the opprobrium of infidel powers; is the warfare of the Christian king of Great Britain. determined to keep open a market where MEN should be bought & sold he has prostituted his negative for suppressing every legislative attempt to prohibit or to restrain this execrable commerce: and that this assemblage of horrors might want no fact of distinguished die, he is now exciting those very people to rise in arms among us, and to purchase that liberty of which he has deprived them, by murdering the people upon whom he also obtruded them: thus paying off former crimes committed against the liberties of one people, with crimes which he urges them to commit against the lives of another.”

Thomas Jefferson, from the original draft of the Declaration of Independence (July 3, 1776), known as the ‘anti-slavery clause,’ this section was removed from the Declaration at the behest of representatives of South Carolina.

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video

VIdeo: Rand Paul and Federal Bayonets on Local Police Rifles

Fascinating confrontation:

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Thought

Thomas Jefferson

“Our liberty depends on the freedom of the press, and that cannot be limited without being lost.”

Thomas Jefferson, Letter to Dr. James Currie (28 January 1786).

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Accountability general freedom tax policy

The People Supreme

Tax Vote

“We’re the only state in the nation,” wails Wade Buchanan of the liberal Bell Policy Center, “where you can only raise revenues, taxes, by a vote of the people.”

Buchanan is talking about his state of Colorado and defending his side in the Kerr v. Hickenlooper case, which features 34 card-carrying members of Colorado’s political elite — sitting legislators, former legislators, former U.S. congressmen, local politicians and other assorted bigwigs — suing the voters of Colorado for having the gall to pass the state’s Taxpayer Bill of Rights (TABOR) initiative back in 1992.

Lovers of big government call TABOR a disaster; most Colorado voters like TABOR and will vote to keep it.

The crux of the case? The ridiculous notion that legislators have some cockamamie constitutional right to levy taxes and spend money without the people empowered with any veto. “When the power to tax is denied,” the suit alleges, “the legislature cannot function effectively to fulfill its obligations in a representative democracy and a Republican Form of Government.”

Immediately, however, the legal issue is whether the politically powerful Kerr plaintiffs even have standing to bring the lawsuit.

Last week, the U.S. Supreme Court vacated a 10th Circuit Court of Appeals decision that had granted standing, returning the case to the appeals court “for further consideration in light of Arizona State Legislature v. Arizona Independent Redistricting Commission.”

That’s good news.

“Most tellingly,” constitutional scholar Rob Natelson points out in a Denver Post column, in that Arizona case “the court praised direct democracy and held that it was ‘in full harmony with the Constitution’s conception of the people as the font of governmental power.’”

Font? We’re the boss.

This is Common Sense. I’m Paul Jacob.

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Tax Vote

 

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Thought

Thomas Jefferson

“It is an axiom in my mind, that our liberty can never be safe but in the hands of the people themselves. . . .”

Thomas Jefferson, Letter to George Washington (January 4, 1786).

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folly free trade & free markets general freedom national politics & policies too much government

A British Puzzle

White labor and minimum wages

Most folks think minimum wage laws are there to help the poor in particular and everybody in general. But economist Scott Sumner, exploring “Britain’s new minimum wage: Is there a hidden agenda?” finds Britain’s new Tory double whammy of decreasing welfare payments while hiking mandatory minimum wage something of a mystery:

Why would a Conservative government sharply increase the minimum wage, in a budget that in many other respects favored small government? The minimum wage is currently 6.50 pounds/hour, and 9 pounds/hour is almost $14/hour in US terms. Also recall that average incomes in the UK are lower than in the US.

He finds a possible reason: to dissuade immigration. Migrants usually have low skills, in part because of language difficulties, so they cannot command high wages — market wages, of course, being defined by worker productivity.

Could the new minimum wage be there to influence migration without doing so directly?

Sumner goes on to discuss the racist origins of the minimum wage in America, Australia, and South Africa. The purpose was pretty clearly to hurt poor workers. Minimum wage laws were established to protect white workers from cheap competition by darker skinned folk.

Sumner’s postscript is interesting: “The [American] Democratic surge of interest in the minimum wage occurred soon after the GOP surge of interest in immigration restriction. Let’s see if the GOP jumps on the minimum wage bandwagon.”

Of course, for every advocate of a class-based, favoritist policy who argues deceptively, there are dozens who are merely mistaken.

This is Common Sense. I’m Paul Jacob.

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White labor and minimum wages

 

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Thought

Dietrich Bonhoeffer

“Fanatics think that their single-minded principles qualify them to do battle with the powers of evil; but like a bull they rush at the red cloak instead of the person who is holding it; they exhaust themselves and are beaten. They get entangled in non-essentials and fall into the trap set by cleverer people.”

Dietrich Bonhoeffer, Letters and Papers from Prison (1967; 1997), p. 4.

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crime and punishment general freedom ideological culture

Bosworth Sentenced

Dr. Annette Bosworth

Last week, Judge John Brown sentenced Dr. Annette Bosworth, a neophyte candidate for U.S. Senate from South Dakota, to twelve concurrent two-year prison terms . . . to be suspended provided she successfully completes three years of probation, pays the cost of her prosecution, and performs 500 hours of community service providing medical care to the poor.

Note: that final punishment is what she has been doing on her own for years, and is sort of why she is in this mess in the first place.

The case isn’t an innocent person being unjustly accused. I’ve met Annette Bosworth; I’m proud to call her a friend. But she wasn’t exactly innocent. She got bad advice and made a faulty decision to sign as the circulator of petitions when not every signature was affixed in her presence.

That’s a mistake. It shouldn’t be a felony.

The bigger issue? The over-the-top prosecution. Attorney General Marty Jackley’s heavy-handed, multi-felony approach sends a chilling message to anyone in South Dakota considering political participation.

More ominous is the apparent long-running personal feud between Jackley and Bosworth. In a statement after her sentencing, Jackley declared that Bosworth had “crossed the line of exasperation.”

But it is South Dakotans who should be exasperated with the AG: “Jackley had said before her sentencing,” the Capitol Journal reported, “that he might recommend prison time depending on Bosworth’s attitude after conviction.”

Meanwhile, State Rep. Steve Hickey, a chief Bosworth accuser, appears to have committed her same sin: signing a petition as circulator and not witnessing each signature. Jackley hasn’t bothered to investigate, but defensively told reporters, “I’ve never said that I won’t look into it.”

Tellingly, Mr. Hickey just resigned his seat in the legislature.

This is Common Sense. I’m Paul Jacob.

Previous commentary:

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Dr. Annette Bosworth

 

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Thought

Thomas Jefferson

“When the representative body have lost the confidence of their constituents, when they have notoriously made sale of their most valuable rights, when they have assumed to themselves powers which the people never put into their hands, then indeed their continuing in office becomes dangerous to the state, and calls for an exercise of the power of dissolution.”

Thomas Jefferson “A Summary View of the Rights of British America” (1774).