Minimum Wage Hike


Here is a letter Don Boudreaux recently sent to the New York Times:

Don
http://www.cafehayek.com/
…………..

1 June 2010

Editor, The New York Times
620 Eighth Avenue
New York, NY 10018

To the Editor:

Suppose Uncle Sam orders you to raise the price you charge for subscriptions to your paper by 41 percent.  Would you be surprised to find a subsequent fall in the number of subscribers?  If you assigned a reporter to investigate the reasons for this decline in subscriptions, would you be impressed if that reporter files a story offering several possible reasons for the fall in subscriptions without, however, once mentioning the mandated 41 percent price hike?

Unless you answered “yes” to this last question, I wonder why you published Mickey Meece’s report on today’s record high teenage unemployment rate (“Job Outlook for Teenagers Worsens,” June 1).  Between 2007 and 2009, Uncle Sam ordered teenagers workers (who are mostly unskilled) to raise the price they charge for their labor services by 41 percent.  (That is, the federal minimum-wage rose from $5.15 per hour in 2007 to its current level of $7.25 in 2009 – a 41 percent increase.)

Does it not strike you as more than passing strange for your reporter – assigned to help explain why teenagers today have an increasingly difficult time finding jobs – to ignore the fact that these teenagers are ordered by government to raise significantly the wages that they charge their employers?

Sincerely,
Donald J. Boudreaux
Professor of Economics
George Mason University
Fairfax, VA 22030

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One thought on “Minimum Wage Hike

  1. Pingback: Michigan Links (June 2, 2010)

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