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


9. Impact on Young, Minorities

The no-good do-gooders advocating the minimum wage say they are doing so in the name of the poor and downtrodden. But it is these very same low-skilled who are harmed the most by this law. A look at unemployment statistics makes this point shockingly clear:

CATEGORY UNEMPLOYMENT RATE
October 1998
Overall4.6%
16 - 19 years of age16.0%
Blacks 16 - 19 years of age29.1%
25 - 54 years of age3.6%

Source: Bureau of Labor Statistics

As can easily be seen, the minimum wage law is wreaking havoc on the job opportunities of those at the lowest end of the socioeconomic scale. During the Great Depression of the 1930's unemployment peaked at a high of 25% of the workforce. Any time there is double digit un-employment the economy is regarded as being in a serious recession. By these standards, teenagers are currently suffering a very serious recession, and there's a super depression among Black teenagers -- this during a time of general economic prosperity! Further, these figures for Black teenagers include middle-class suburban Blacks and upper-class Blacks. Among inner-city Black populations the unemployment rate for these teenagers exceeds 50%. During a recession for the overall economy these unemployment statistics for the least well-off get even worse! Of course minimum wage law advocates prefer to ignore these results, content with their good intentions in supporting this terribly cruel law.

 
 

The Concise Guide to the Minimum Wage © 2003 Jim Cox