John Ransom

Goldilocks wrote: So how are beginning workers and poor people supposed to advance economically? Obama Wage Hike is Obamacare by 'Other Means'

Dear Comrade Goldi,

I can tell you one way to make it more difficult for “beginning workers and poor people” to advance. If you raise the minimum wage, they’ll be likely to be hurt worst, first.

People advance economically by gaining experience and thus bringing more value to an employer, not by passing capricious laws.

According to a BLS survey done in 2011, only 5 percent of workers who make hourly wages are at or below the federal minimum wage to begin with. Of the 1.7 million people who receive minimum wage salaries, 54 percent are aged 24 or below even as 80 percent of the workforce is 25 and above. So despite accounting for only 20 percent of the workforce, we see that minimum wages are more concentrated in those “beginning workers and poor people.”

When you are younger and lack skills you make less money.

Only a liberal would have difficulty understanding this obvious fact.

Powerful or Pitiful?

Curiously-- and damningly too-- 2.1 million of the 3.8 million at or below the minimum wage are accepting wages below the federal minimum.

This suggests that a hike in the minimum wage would: 1) force employers to break the law or 2) fire employees.

While the media has been busy proclaiming the good news that unemployment is down, unemployment amongst teenagers aged 16 to 19 rose by 0.5 percent last month and black unemployment has risen 0.2 percent over the same period.

John Ransom

John Ransom’s writings on politics and finance have appeared in the Los Angeles Business Journal, the Colorado Statesman, Pajamas Media and Registered Rep Magazine amongst others. Until 9/11, Ransom worked primarily in finance as an investment executive for NYSE member firm Raymond James and Associates, JW Charles and as a new business development executive at Mutual Service Corporation. He lives in San Diego. You can follow him on twitter @bamransom.

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