“Labor unions are the biggest force behind attempts to raise the minimum wage”

via Mark J. Perry at AEI . . .

by Thomas Sowell

In 1948, the year I left home, the unemployment rate among black 16-year-olds and 17-year-olds was 9.4 percent, slightly lower than that for white kids the same ages, which was 10.2 percent.

Over the decades since then, we have gotten used to unemployment rates among black teenagers being over 30 percent, 40 percent or in some years even 50 percent. Such is the price of political “compassion.”

Whatever the good intentions behind minimum wage laws, what matters are the actual consequences. Many people have ideological, financial or political incentives to obfuscate the consequences.

Labor unions are the biggest force behind attempts to raise the minimum wage, not only in the United States but in other countries around the world. That may seem strange, since most union members already earn more than the minimum wage. But the unions know what they are doing, even if too many gullible observers do not.

Low-skill workers with correspondingly low wages compete in the labor market with higher skilled union members with correspondingly higher wages. Many kinds of work can be done by various mixtures of low-skilled workers and high-skilled workers.

Minimum wage rates that are higher than what most low-skilled and inexperienced workers are worth simply price those workers out of the job markets, leaving more work for union members. All the unions have to do is camouflage what is happening by using rhetoric about “a living wage,” or “social justice” or whatever else will impress the gullible.

Life was tough when all I could get were low-paying jobs. But it would have been a lot tougher if I couldn’t get any job at all. And a tough life made me go get some skills and knowledge.

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