Some libertarians argue that minimum wage laws are a major road block to gaining experience. Prior to minimum wage, employers were able to hire more people at entry level positions, paying them less, but giving them valuable on the job training and experience. Having gained that experience, employees would then have more opportunities open to them moving forward.
Walter E Williams. A longer video covering more than just minimum wage but, if you're interested, it's worth the watch:
When I was younger and heavily left leaning, I couldn't see the rationale of conservatives. It literally seemed like an incoherent and illogical position to me. This bothered me though, because I knew there must be some coherence in that position for it to be so popular. Simple arguments like "they're all racist, they're all greedy, etc" could not account for such a popular position.
I'm fortunate to have found these public figures and economists, and I wanted to share this with NT and spark a discussion. Yes, forreal. Ignore the overly dramatic title
I see a lot of support for further increases in minimum wage as we're approaching the new election year. But further increases in the minimum wage will most likely produce further unemployment.
Lets take Seattle, which recently passed a 15/hour minimum wage law to be phased in over time, as a case study. This article was just posted last month. MSA = metropolitan statistical area
In June of last year, the Seattle city council passed a $15 an hour minimum wage law to be phased in over time, with the first increase to $11 an hour taking effect on April 1, 2015. What effect will the eventual 58% increase in labor costs have on small businesses, including Seattle area restaurants? It’s too soon to tell for sure, but there is already some preliminary evidence that the recent minimum wage hike to $11 an hour, along with the pending increase of an additional $4 an hour by 2017 for some businesses, has started having a negative effect on restaurant jobs in the greater Seattle area.
The lighter blue line in the top chart above shows that restaurant jobs in the Emerald City started to stagnate and then decline around the first of this year (when the state minimum wage increased to $9.47 per hour, the highest state minimum wage in the country), following steady growth in Seattle MSA food services employment during the previous five-year period between January 2010 and January 2015 (data here). On April 1 of this year, the city’s minimum wage increased to $11 an hour which may have contributed to the loss of 700 Seattle area restaurant jobs between January and September (new BLS employment data for last month were released yesterday), the largest decline over that period since a loss of 3,000 restaurant jobs in 2009 during the Great Recession (see bottom chart above). What makes the restaurant job losses this year especially noteworthy are that the average job gain during the January-September period over the previous five years from 2010 to 2014 was almost 3,000, and over the previous three years nearly 4,000.
What is also noteworthy about the loss of Seattle restaurant jobs this year is the fact that restaurant employment in the rest of Washington state is booming this year, as the top chart shows (see dark blue line, state restaurant employment data here). At the same time that Seattle area food services employment has declined this year by 700 (and by -0.52%), restaurant jobs in the rest of the state have increased by a whopping 5,800 new positions (and by 6.6%).