Why do Democrats so love the minimum wage? Because their union allies do

The higher the minimum wage, the higher the wages of union workers whose pay is tied to it. But wait, there’s more!

Minimum-wage hikes are beneficial to unions in other ways. The increases restrict the ability of businesses to hire low-skill workers who might gladly work for lower wages in order to gain experience. Union members thus face less competition from workers who might threaten union jobs.

This view is not speculation. A 2004 study in the Journal of Human Resources by economists William Wascher, Mark Schweitzer and David Neumark determined that lower-wage union workers typically see a boost in employment and earned income following a mandated wage hike. Never mind the corresponding drop in jobs and earned income for nonunion minimum-wage workers. They may have been priced out of the jobs they need, but that is not the union’s concern—its members have landed higher wages and reduced competition for jobs.

8 Comments

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8 responses to “Why do Democrats so love the minimum wage? Because their union allies do

  1. Peg

    And my liberal friends just DO NOT UNDERSTAND THIS. They want to help those in need – and then believe that policies like these that are more harmful than helpful should be put in place.

    Arghhhhhhh!

  2. Westchesterer

    It makes sense since a union job is basically a defined minimum wage that is x times the federal/state minimum wage. Anything that reduces the union wage:minimum wage ratio will make unions more competitive, since it increases non-union labor costs.

  3. Add in all government work has to honor the union wage level including in Greenwich.
    Instead of being able to hire and train people in basic and complex physical and clerical based projects taxpayers are forced to be exposed to non-competive pricing under the schill of bidding.
    Nutmeg economics rules.

  4. Anonymous

    CF i have solved our schooling problems in Greenwich and potential busing and diversification issues .. well actually i did not Maxine Waters has, enjoy http://lightfromtheright.com/2013/02/25/rep-maxine-waters-everything-thats-wrong-one-statement/

  5. Balzac

    On the first day of economics class, the students learn a simple lesson: that minimum wage laws simply lead to less employment, just as rent-control laws lead to less investment in rental real estate.

    Almost no economists favor minimum wage laws. Almost all Democrats do, supposedly on economic grounds.

  6. Walt

    Dude –
    Here is a great video on women taking Biden’s advice to buy a shotgun:

    I love your cameo appearance at the end of the clip.
    Your Pal,
    Walt