The Truth on Minimum Wage

submitted by Dr. Paul Bertan

Below is an excerpt of an article by Richard Daughty titled "Have you got your $87?" (click on title for full article)

...the angriest guy in economics" [The Mogambo Guru] on the results of raising the minimum wage at the federal level or elsewhere... it truly explains the results of raising the wages, and on and on...

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Richard Daughty is general partner and C.O.O. for Smith Consultant Group, serving the financial and medical communities, and the writer/publisher of the Mogambo Guru economic newsletter, an avocational exercise the better to heap disrespect on those who desperately deserve it. The Mogambo Guru is quoted frequently in Barron's, The Daily Reckoning and other fine publications...

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--In part:

"The bad news is that, thanks to the last election, half the states in the USA now have legally-mandated higher minimum wages, most of them usually about 40% higher than the federal minimum wage of $5.15.

This is unalloyed bad news. If you don't believe me, then listen to Gerard Jackson, the Economic Editor of Brookes News, who cited economists Richard Vedder and Lowell Gallaway of the Employment Policies Institute, who found that there "was a correlation between minimum wage increases and poverty among 'the poorest of the poor.' In short, [effective] minimum wage increases raised the level of poverty. This is precisely what economics predicts."

And it is exactly what we will get more of, regardless of the glut of "economists", including some laughably lame-brained Nobel Prize crackpots, who have secured their place in the Mogambo Big Book Of Economic Infamy (MBBOEI) when they advocated, in writing, another raise in the minimum wage.

It boggles the mind that they would advocate such a thing when all of the other dozen or so raises in the minimum wage for the last 50 years have done absolutely nothing good for anybody, and have only left us with predictably more tragically poor people, a bigger government to take care of them, and higher prices for everybody, necessitating subsequent hikes in the minimum wage, raising prices, and continuing the spiral down, down, down to the Stygian depths of stinking economic hell and utter ruination.

And note that not one of these lowlife "economists" recommended that the damnable Federal Reserve stop creating excess money and credit, which is the cause of the price inflation that is bedeviling the low-wage worker in the first place! Idiots! First-class idiots!"

One of the worst exploits in the past election was perpetrated by Democrats. Their anti-Republican ads showed that the candidate "voted against raising the minimum wage while voting in favor of raising his own (legislative) salary."

Raising the minimum wage simply raises costs for employers, thereby raising cost of living for everyone. We should look at attracting businesses to Upstate NY which pay HIGHER than minimum wages. A pro-business climate will do this.