Category Archives: minimum wage

Don’t Forget History

Amity Shlaes has written a fine piece in National Review Online on one particular aspect of the Great Depression having to do with minimum wages (NRO, May 7, 2014).  As she points out, recent research has changed the way we evaluate that event in economic history.  In case you don’t remember, the dominant narrative had been that the stock market crashed and Franklin Roosevelt’s New Deal programs rode to the rescue.  These programs began to bear fruit around 1938 or so, with… Continue Reading ››

Sad, sad, sad. When one of the greats becomes blinded by ideology. Sorry I can’t get the video to embed directly, but please watch this first. Hank Aaron is a true American hero, for Americans of all races and classes.  As Braves chairman Terry McGuirk said Aaron “set the home-run record the old-fashioned way” and added “You will always be the home run king of all time.” There are no allegations (that I’m aware of) that Mr. Aaron performed any of his accomplishments except by God-given talent and exceptional hard work. … Continue Reading ››

“It’s easy to remember, $10.10”: The 5% Solution

Target: poverty Number positively effected: 16,500,000 Number pushed above the poverty line: 900,000 900,000/16,500,000 = 5.45% In his State of the Union address President Obama said: “It’s easy to remember, $10.10”. One option for increasing the minimum wage is to increase the federally mandated minimum to $10.10 an hour. Tuesday, the Congressional Budget Office released a report on The Effects of a Minimum-Wage Increase on Employment and Family Income. This report echoes what we teach in basic microeconomics. The first… Continue Reading ››

Bad Economics & Bad Theology: the Christian case for the minimum wage

This is the gift that keeps on giving for blogging Bereans; Dr. Wheeler has ably commented in his post today on the minimum wage but no sooner did he publish it than I found a piece by Elizabeth Stocker making the “Christian” case for the minimum wage.  Please read her article and provide your response to her argument–what points do you find persuasive and what do you find weak, both theologically and economically?  On Monday I will provide an extended… Continue Reading ››

Minimum Wage legislation, should we abolish it?

This is subject of a recent debate featuring Libertarian’s Russ Roberts and Jim Dorn as well as Progressive’s Jared Bernstein and Karen Kornbluh.   Unfortunately, the audience voted with Mr. Bernstein that we should keep the minimum wage.  If you take the time to listen to the debate, you’ll find some rather startling admissions by Mr. Bernstein.  He (and Ms. Kornbluh) do not believe the Law of Demand holds–that is the if the price of something goes up (in this… Continue Reading ››