Tuesday, March 28, 2006

MI Republicans bow to the street - poor citizens and legal aliens will lose their jobs
Mich. Gov. Signs Minimum Wage Increase

LANSING, Mich. (AP) -- Workers earning the minimum wage in Michigan will get a raise in October under legislation signed Tuesday by Gov. Jennifer Granholm.

The minimum rate will climb from $5.15 an hour to $6.95 an hour, then to $7.15 an hour in July 2007 and to $7.40 an hour in July 2008…

Michigan's Republican-dominated Legislature passed the minimum wage increase this month after it became evident that a petition drive to put the issue before voters in November was likely to succeed...
There are 12 million illegals in the US who are more than willing to work under the table for below minimum wage. And employers, unafraid of the toothless enforcement of employment and immigration law, will gladly hire them ‘off the books.’

Here's some reading on the subject:

Thomas Sowell
What Causes Unemployment?

...The net economic effect of minimum wage laws is to make less skilled, less experienced, or otherwise less desired workers more expensive -- thereby pricing many of them out of jobs. Large disparities in unemployment rates between the young and the mature, the skilled and the unskilled, and between different racial groups have been common consequences of minimum wage laws...

Walter E. Williams
Minimum wage, maximum folly

...The idea that minimum wage legislation is an anti-poverty tool is simply sheer nonsense. Were it an anti-poverty weapon, we might save loads of foreign aid expenditures simply by advising legislators in the world's poorest countries, such as Haiti, Bangladesh and Ethiopia, to legislate higher minimum wages. Even applied to the United States, there's little evidence suggesting that increases in the minimum wage help the poor. Plus, according to the Bureau of Labor Statistics, only 2.2 percent of working adults earn the minimum wage...

The Cato Institute

The Economic Effects of Minimum-Wage Laws

...Simply stated, if the government coercively raises the price of some good (such as labor) above its market value, the demand for that good will fall, and some of the supply will become "disemployed." Unfortunately, in the case of minimum wages, the disemployed goods are human beings. The worker who is not quite worth the newly imposed price loses out. Typically, the losers include young workers who have too little experience to be worth the new minimum and marginal workers who, for whatever reason, cannot produce very much. First and foremost, minimum-wage legislation hurts the least employable by making them unemployable, in effect pricing them out of the market...

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