The Minimum Wage: Over-Promising and Under-Delivering

With all the political madness that faced us in 2013, we are already facing new challenges in this new year. By new challenges, I mean the same ones that Liberals tend to bring back to the table every few years which include new regulations, tax increases, extending unemployment benefits, and most importantly: raising the minimum wage. Liberals within the Democratic Party typically use an emotional standpoint in attempting to pass these radical laws, claiming that it is for "the good of the people" and that they are ecstatically showing "compassion" for the poorest Americans. But they fail to understand the truth about what minimum wage laws have caused, and their bad effect towards small businesses and the economy as a whole.

A simple fact that is noteworthy in economics is a consumer tends to buy a product when the price is lower. Likewise, these same consumers think twice about purchasing the item if it's price is higher. While almost every sane individual within the political spectrum tends to agree with this, Democrats still seem to believe that you can raise the price of labor, and yet the amount of labor being hired will not be reduced. 

Nearly every statistic and fact seems to contradict their claim that raising the minimum wage will work wonders with the economy. For example, every state in our nation that has a higher minimum wage than the federal $7.25 an hour, also has a much higher unemployment rate. A noteworthy case to this was one pointed out in 2010, when the unemployment rate in Michigan was 14%, compared to only 3.8% in North Dakota.

On the international scale, it is almost exactly the same: countries with higher minimum wage laws also have much higher unemployment rates than countries with lower ones. Now of course, not all these countries had minimum wage laws enacted at one point or another, and the amazing truth is when the laws were not in place, the unemployment rate has been much lower in these same countries.

A country worth noting is Switzerland, which up until recently, had no minimum wage law at all. In February 2003, Switzerland experienced their highest unemployment rate in 5 years, and the rate was 3.9%. In February 2013, their unemployment rate was 3.1%. 

Most Americans cannot recall the last time unemployment was so low in this nation, besides the years of prosperity that were left following the Reagan Administration. But here in the States, prior to the enactment of the minimum wage law, rates that low were common. Many economists even point out that during the Coolidge administration, the unemployment rate was as low as 1.8%. 

Despite all the facts, Liberals still tend to believe that these laws help the poorest of Americans, when the only thing it does is reduce their actual chance of being able to find a job. 

Even the claim that minimum wage laws help minorities make a decent living can be challenged. The last time black unemployment was lower than white unemployment in the United States was in 1930 - ironically the last year before any federal minimum wage law was enacted. 

Yet it's the Republican Party who still only care about the richest Americans and hate poor people. Here is a tip regarding these laws that the Democratic Party claim are good for America: don't judge a book by it's cover.