Hi All. Almost forgot about Les' argument against the minimum wage (Prop J). Didn't change any language (no need to)--just dropped the title and put both organizations at the bottom. Les was pithy and to the point at 285 words, so there was room for both. Thanks for the argument, Les. Please review.
The proponents of
the minimum wage increase allege that it will (1) increase the purchasing power
of those at the bottom of the economic ladder and (2) increase total spending
in San Francisco and thus increase general prosperity.
With regard to the first
claim, it is true that some people will see an increase in their money incomes.
But there are two sides to every economic transaction. One person’s income is
someone else’s expense. The true effect of a minimum wage increase is
unknowable because we cannot predict to what extent employers will attempt to
mitigate the wage increase by (1) raising prices to their own customers or (2)
hiring fewer employees. But we can be sure that at least some of the wage
increase will be passed on to other actors in the economy. At least some of the
losers will be other low income people who will not be able to find work at the
higher price level, because employers will not deem it profitable to hire them.
With regard to the
second claim, this is mathematically impossible. Government cannot create
general prosperity by decreeing that buyers have to pay a higher price for some
good or service. It can only transfer wealth from those who pay the wages to
those who receive it. Regardless of whether this is just, the payers will
necessarily have to spend less on something else and the people who depend on
that spending will be losers also. Granting some employees an arbitrary wage
increase without any increase in production can only lead to a higher price
level and a lower employment level.
Vote NO on Prop J.
Libertarian Party of
Libertarian Campaign Committee