THE MINIMUM WAGE SCAM! In the 1940s and early 1950s before the - TopicsExpress

THE MINIMUM WAGE SCAM! In the 1940s and early 1950s before the minimum wage reached its current high level African American male teenage unemployment rates were lower than those for whites. Today, the black male teenage unemployment rate is much higher than that of whites. The reality is that minimum wage laws most penalize minorities and those with the little or no job skills. This is certainly what prompts many black groups such as the National Conference of Black Mayors, to support a lower minimum wage for teenagers. A lower minimum wage would boost black youth employment and improve on the job training opportunities for those with little or no skills. A key reason why minimum wage laws continue to be supported is that many Americans believe they actually raise the wages of low-paid workers. In addition, labor unions seek high minimum wage levels-to reduce competition from non-union workers. Since the Unemployment rate does not measure the number of working age Americans without jobs but rather measures only those seeking work, increases in the minimum wage seldom raise the unemployment rate. There are other negative effects caused by increasing the minimum wage. 1. The minimum wage Encourages employers to automate and substitute computers and other labor-saving equipment for workers. As the cost of employing workers in low-wage, manual labor jobs increases with rises in the minimum wage, the cost of mechanizing or automating such jobs becomes more reasonable. Those who come to the labor market with substantial skills and education need not be affected by the minimum wage. They are productive enough to permit employers to pay at least the minimum wage while also providing further training and opportunities for advancement. But for the disadvantaged workers with few skills and below-average education the minimum wage is incompatible with the opportunity for adequate on-the-job learning. For this group, the minimum wage implies chronic poverty and a life of low-wage jobs.