Tag: minimum wage

Minimum Wage: No Such Thing as a Free Lunch

By Jeffrey Dorfman Last week, voters in Switzerland voted by an overwhelming 76 percent to 24 percent to reject the establishment of Switzerland’s first minimum wage. The proposed wage floor was about $24 per hour and would have been the highest minimum wage in the world if the referendum had passed. A large part of its rejection at the ballot box was a strong informational campaign by employer groups who explained that such a high minimum wage would mean many lower wage workers losing their jobs. This election result is in keeping with some polling here in the U.S. that a majority of people do not support raising the minimum wage once the cost of such measures is understood. Polls… View Article
(This article was published on Forbes.com and is reprinted with permission by the author.) By Jeffrey Dorfman President Obama and the Democrats continue to push for an increase in the minimum wage. Against much evidence that such a law is very ineffective at reducing poverty, the administration is still touting the benefits they claim would help millions of workers. Yet, it turns out that, for the sort of worker about whom we should be most concerned, such a policy actually benefits the federal government more than the worker. That’s right. As I will show below, a hypothetical single mom with one kid would see more than half of the proposed minimum wage increase offset by a reduction in benefits from… View Article

America’s Longest War: The War on Poverty

  By Benita M. Dodd Fifty years ago this month – on January 8, 1964 – President Lyndon B. Johnson announced an “unconditional war on poverty in America.” Considering the money spent on poverty-related programs in the ensuing half century – $16 trillion, according to the Cato Institute – and the percentage of Americans still listed as poor, it’s time to concede defeat, change strategy or redefine poverty. Conceding defeat against poverty is unacceptable, of course. But redefining poverty means building a better safety net, not opening a bigger umbrella, as President Obama is expected to propose in his State of the Union Address this month. He’s expected to dramatize income inequality – the gap between the “rich” and… View Article

The Right Minimum Wage: $0.00

We’ve written often about the unintended consequences of the minimum wage (and all price controls). But it’s a sea change when a New York Times editorial agrees: “Anyone working in America surely deserves a better living standard than can be managed on $3.35 an hour. But there’s a virtual consensus among economists that the minimum wage is an idea whose time has passed. Raising the minimum wage by a substantial amount would price working poor people out of the job market. A far better way to help them would be to subsidize their wages or – better yet – help them acquire the skills needed to earn more on their own.” Here’s a link to a video of Milton Friedman… View Article

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