The Concise Guide to the Minimum Wage

by Jim Cox

 

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Introduction

  1. What's the Effect of the Law?
  2. Why Not Raise It Even Higher?
  3. "People Have to Have a Livable Wage"
  4. On-the-Job Training
  5. "How Could Anyone's Labor Be Valued at Less Than the Minimum Wage?"
  6. Minimum Wage is Actually Higher than $5.15
  7. "It's Easy for the Middle Class to Call for Abolishing the Minimum Wage"
  8. Organized Labor
  9. Impact on Young, Minorities
  10. Fixed Number of Jobs?
  11. Racism
  12. Supra-Marginal Firms
  13. The Sub-Minimum Wage Law
  14. 300,000 vs. 600,000 Jobs Lost
  15. Crime
  16. Mandated Wages, Not Mandated Jobs
  17. "Businesses Can Afford It"
  18. The Card-Krueger Study
  19. The Monopsony Model
  20. Current Pay in the Market
  21. What is the Source of Wages?
  22. Individual Freedom

References

About the Author


7. "It's Easy for the Middle Class to Call for Abolishing the Minimum Wage"

At this point it may occur to the proponents of minimum wage laws to say, in effect, "Well, isn't it easy for someone like the author to call for abolishing the minimum wage; after all he wouldn't have to settle for a job paying only $4.00 an hour, so what's it to him to condemn others to be paid so little?" But, this is not so. Everyone accepts less than the minimum wage one way or another (this author certainly did). A middle-class college student, for example, may be earning an above minimum of $7.00 per hour in a part-time job while attending classes. But when the time spent in class, studying, etc. is factored in, the student is not earning so much. (As an example, 20 hours per week devoted to school and 20 hours per week on the job averages out to only $3.50 per hour's efforts.) Likewise, consider the doctor-to-be in medical school. Taking into consideration the time in undergraduate school and then in medical school and the expense of books, lab fees, and tuition, this person is likely making a negative hourly wage! Yet they do so willingly, in both cases taking a low per hour wage now as an investment in their ability to earn a higher wage in the future. As one last example, even multi-billionaire businessman Bill Gates spent countless hours learning, developing and honing his computer abilities in his youth without any hourly pay.

The minimum wage law is a civil rights issue. Everyone -- middle class college students, future doctors, business owners -- is legally allowed to accept the sub-minimum payment that may be necessary to get started and acquire skills that will help them earn more later. Everyone, that is, except the low-skilled with no prospects of otherwise improving their earning abilities (see Section 4 On-the-Job Training) -- the very ones who need this opportunity the most. The minimum wage law is a violation of the equal protection clause of the 14th amendment and should be declared unconstitutional.

 
 

The Concise Guide to the Minimum Wage © 2003 Jim Cox