Jesse Jackson Solution: Raise the Minimum Wage Again

18 Jun

Star Parker, the well-known black conservative activist, wrote a piece about raising the minimum wage in America.  I received it as an e-mail from her organization, the Center for Urban Renewal and Education (CURE).

Excerpts from this piece:  [Bolding is mine]

.  .  .  .  

Rep. Jesse Jackson, Jr., D-Ill., wants to again raise the minimum wage — from $7.25 to $10 — despite an abundance of experience that doing so accomplishes exactly the opposite of what minimum wage advocates claim is their objective.  [Namely, to] Make low income earners better off.

Why doesn’t McDonalds increase the price of Big Macs if it wants to sell more? It’s pretty obvious that consumers will buy less of a product when its price goes up.

So why is it not equally obvious that consumers of labor — employers — will buy less of a class of labor if the price of that labor increases?

The data bears out this simple logic. We have a long history showing correlation between increases in the minimum wage and corresponding increases in unemployment in those sectors that earn in this range — the young and unskilled.

.   .   .   . 

Ron Haskins, co-director of the Center on Children and Families at the Brookings Institution, recently testified before the Senate Finance Committee on hearings on poverty.

Among the factors that he identified as the causes of poverty is declining participation in the work force. According to Haskins, between 1980 and 2009, work force participation among males declined from 74.2 percent to 67.6 percent.

However, among young black men, work rates declined from 60.9 percent in 1980 to 46.9 percent in 2009.

How exactly does Jackson think he is helping the prospects for these young black men by making it more expensive to hire them?

.   .   .   .

 What’s key in alleviating poverty?

Individual initiative and personal responsibility. According to Haskins, following three rules reduces to 2 percent the chances that an individual will wind up in poverty and increases to 72 percent their chances of winding up a middle class wage earner.

“Complete at least a high school education, work full time, and wait until 21 and get married before having a baby.”

According to Haskins’ research, those violating these three rules have a 77 percent chance of winding up in poverty.

What can government do so that our economy will grow more rapidly and generate more jobs?

Appreciate that government cannot create jobs or wealth. Only private individuals can do that. Government should do its proper job and protect lives and property of citizens and minimize getting in their way so they may work, produce and invest.

[End Excerpts]

Can someone show me where Star Parker is wrong?

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