Tuesday, September 20, 2016
On the Concept of Paying Surly, Inexperienced, and Low-Skilled Teenagers $15 an Hour When Their Actual Marginal Revenue Product Is Closer to 6 to $8 an Hour
It's ludicrous on so many levels. a) It's a price control and price controls have always shown to be harmful to the economy (can you say, Hoover and Nixon?). b) By raising the minimum-wage that high you'd be making it significantly harder for young people to get that first entry-level job and probably raising teen unemployment. c) Being that the money isn't legitimately earned in the market place, we risk the possibility that these young people will develop a sense of entitlement and a something for nothing attitude. And d) teenagers for the most part don't need the money (one of the main problems of the minimum-wage is that it's a blunt instrument and never means-tested) and so why pray-tell should we hand it over to them? And it's just bad economics (as in not even understanding Econ 101) pure and simple.