Showing posts with label minimum wage. Show all posts
Showing posts with label minimum wage. Show all posts

Sunday, March 21, 2021

Because You Are Lukewarm, I Will Spew You Out of My Mouth

The local newspaper in my small town manages to publish six days each week, which if I remember right was its frequency fifty-plus years ago, before I moved from the area.  That's not bad, given the difficulties newspapers everywhere are having.  Of course the pages are smaller than they used to be, as with most newspapers nowadays, but most of the content is locally produced and relevant.  I subscribe to the digital edition to support a local business, though I still seem to end up reading a print copy at the public library most of the time.

Last week I noticed a big column printed on a gray background, running from the top to the bottom of the editorial page.  It turned out to be a syndicated thing by Michael J. Hicks, a professor of economics at Ball State University, on the subject of the minimum wage, a timely enough topic.  I started reading.  It was strange.

The minimum wage has been much in the news these days, because of Joe Biden's abandoned promise to raise it to $15.  Professor Hicks began by declaring, "it seems wise to treat the issue a bit differently."

Instead of outlining the positive and negative effects of a particular increase of the minimum wage, I’ll offer the best arguments for and against any minimum wage. In so doing I’ll attempt an ideological Turing test, making the arguments so clearly that a reader cannot discern my personal position. By explaining the best arguments on both sides, I hope to achieve two goals. The first is to make clear the need for compromise. The second is to maximize angry comments from readers. Wish me luck.

And that was what he did: he rehearsed some basic arguments for and against having a minimum wage at all.  It reminded me of the late Alexander Cockburn's satirical piece "The Tedium Twins," which mocked PBS's McNeil-Lehrer Report for its dedication to finding two sides to every question, both of them as near a fantasized middle of the road as possible.  It's true that there are people who'd like to abolish the minimum wage, but they aren't likely to get anywhere, and abolition is not on the table right now anyway.  So why bother?  It's like going over the arguments for and against giving women the vote: quite irrelevant except for a few cranks, but it does fill up those column-inches, and Professor Hicks expressed his hope that he'd covered the arguments well.

If I have done so, and you, dear reader, are honest with yourself, you must admit that both the argument for and against hold a great deal of truth. I would go so far as to say that both arguments are essentially true.

The policy environment facing functioning democracies is almost always like the minimum wage debate. Both sides offer argument possessed of both supportive facts and truth. Yet, entirely reasonable, educated and well-meaning people still disagree. It is a hallmark of a liberal democracy that our policy debates are dominated by matters in which compromise is not just possible, but necessary. That is largely because we’ve solved most of those problems where compromise is not possible. 

Well ... no.  If I'm honest with myself, the arguments against the minimum wage were actually quite bad.

The best argument in opposition to a minimum wage is that government should not, and cannot, be in the wage- or price-setting business. Government has no role in a great many high-stakes personal decisions. Government cannot tell us what language to speak, what church to attend, who to marry or with whom to form a family.

No government may tell us adults how much alcohol we may consume, whether or not we can smoke tobacco, nor increasingly whether or not we may freely purchase cannabis or other drugs. Government cannot tell us whether or not we may own a gun or what type of house, automobile or boat we may own. Government isn’t permitted to do these things because free people won’t allow government to do these things.

However, free people will allow government to set and increase a minimum wage: a $15 minimum wage is favored by about two-thirds of likely voters, according to Pew, and other pollsters get similar results.  The comparisons Hicks lists -- what language to speak, which church to attend, who to marry, etc. -- are not similar in kind to a mandated minimum wage anyway.  I don't think it's accurate to claim that this argument is essentially true.  Hicks says it's the best one he knows of, and despite his affectation of impartiality, he can hardly take it seriously.  Instead he spent quite a number of column-inches saying effectively nothing.  I would call that irresponsible: as an educator, his role should be to address live issues rather than evade them.

As for "compromise," well...

As Congress commences a debate on increasing the minimum wage, we should view this as a crucial moment for our Republic. We have just passed through the most significant assault on our Constitution since the Civil War. Our ability to overcome that and prevent it in the future depends in part on how effectively we compromise over legislation. We should view the minimum wage as a good place to start.

The fun part of this sort of rhetoric is that you can advocate pretty much any kind of compromise you like if you get to decide where the extremes are.  Professor Hicks sets his extremes as abolition of the minimum wage and having one; compromise in that case would mean cutting the minimum wage, and I don't think a free people will allow that to happen.  The important point here is that those are not the options Congress will debate.  On Professor Hicks's assumptions, compromise would mean raising it to less than $15, or maybe cutting it, depending on where he imagines the Republican position to be.  That is not going to work either.  I'd like to suppose that as a professor of economics, he's aware that the current figure, $7.25, is a poverty wage that hasn't kept up with either inflation or increased worker productivity, which wage increases are supposed in principle to track. 

But to repeat, compromise depends on where you set the extremes, so let me suggest as one extreme that the minimum wage be abolished, and on the other, that the US impose really confiscatory taxes on the richest Americans, and use the new income to institute a guaranteed universal income for all Americans.  While I'm dreaming, let me add the abolition of all business-endowed chairs of economics at state universities.  We could compromise on, say, a $50 minimum wage.  Our future depends on how effectively we compromise on legislation, so let's get to it.

Tuesday, February 19, 2013

Can't We All Just Get Along?

Another short one.  This morning Jim Hightower did a commentary on President Obama's proposal to increase the minimum wage.
But then came the number: $9 an hour. Excuse me, Mr. President, but that means a person who "works full-time" would nonetheless "have to live in poverty." Yes, nine bucks is a buck-seventy-five better than the current pay, but it's still a poverty wage, and it doesn't even elevate the buying power of our wage floor back to where it was in 1968.
Of course I'd already heard this, and probably you have too.  What occurred to me was that Obama is up to his old tricks again.  You may remember that when he was putting together his first stimulus bill in 2009, he included substantial (and probably excessive) tax cuts, before the Republicans had even demanded any.  Later Obama conceded this wasn't the best idea:
Now in retrospect, I could have told Barack Obama in December of 2009 that if you already have a third of the package as tax cuts, then the Republicans, who traditionally are more comfortable with tax cuts, may just pocket that and attack the other components of the program. And it might have been better for us not to include tax cuts in the original package, let the Republicans insist on the tax cuts, and then say, O.K., you know, we’ll compromise and give you your tax cuts, even though we had already proposed them.
Has he learned anything since then?  Apparently not.  If you want to raise the minimum wage to an obviously inadequate, poverty-level $9 an hour, do you begin by declaring $9 as your goal, or do you start out higher?  Given the recent precedent of Obama's concessions on raising upper-crust tax rates, I think it's a good bet that he'll eke out some increase in the minimum wage -- maybe to $8.25 or even $8.50 -- blame the Republicans for their opposition, and then he and his devotees will tout whatever paltry increase is won as proof of Obama's great concern and care for the Middle Class.

Monday, October 15, 2012

Passing Gas

One of my right-wing acquaintances (let's call her RWA3, to distinguish her from RWA1 and RWA2) passed this along ("shared" it, if you like) on Facebook today.  The source she'd got it from captioned it "'Like' if you think gas should still be this price!"

Why sure!  And the minimum wage should still be $1.60 an hour.  To say nothing of the fact that people of the age RWA3 and I share were dismayed when gasoline rose to the obscene price of 79.9 cents a gallon.  In those days, though, the minimum wage was $4.25, which was ruining American business.

Friday, May 22, 2009

Off We Go Into the Wild Blue Yonder

I'm writing this in the Indianapolis airport while I wait for my flight to Detroit, and thence to Tokyo and ultimately Korea. Posting will continue sporadic until I get settled in, but if last year is any indication, I'll have a lot to say while I'm there. Vacations are nice for that sort of thing.

Meanwhile, I've restored the blog's original title. "Making the world safe for people", the current motto, occurred to me when I read a blog whose motto was "Making the world safe for liberals," which seemed a bit restrictive to me.

According to the Hankyoreh, members of the Korean Women’s Trade Union are picketing for a 1,000-won (about eighty cents) increase in the minimum wage. The article's title misled me: I thought it meant they'd already won the increase. Given that income inequality in Korea is increasing, an increase is probably needed. But violent riots like this one -- see the bloodlust in the foreground woman's face!) are just what Lee Myung-bak's government is trying to prevent by refusing to grant permits to large assemblies in urban centers. The excuse is that they might turn violent, which is valid enough, but that danger could be diminished by taking away the police's water cannons and not ordering them to attack the marchers. I know, I know, if we outlaw water cannons, then only outlaws will have water cannons...