Open letter to President Obama (Part 513) (Minimum Wage, Maximum Foolishness)

Open letter to President Obama (Part 513)

(Emailed to White House on 5-4-13.)

President Obama c/o The White House 1600 Pennsylvania Avenue NW Washington, DC 20500

Dear Mr. President,

I know that you receive 20,000 letters a day and that you actually read 10 of them every day. I really do respect you for trying to get a pulse on what is going on out here.

______________

It seems that everything that you do to help the economy actually does the opposite.

Should the federal government make life more difficult for low-skilled workers?

I hope everyone will emphatically say “NO!”

Heck, most people understandably will think you’re crazy for even asking such a preposterous question.

Minimum Wage Cartoon 2But some of those people will also think that it’s a good idea for politicians in Washington to make low-skilled workers less attractive to employers by raising the minimum wage.

I often ask such people whether they are more likely to buy a Big Mac if McDonald’s raises the price by 24 percent. They say they are less likely.

I then ask them if they are more likely to buy a car if GM increases the price of a Buick by 24 percent. They say less likely, of course.

But they seem to have a blind spot when I ask them whether employers will be more likely or less likely to hire low-skilled workers when the government increases the cost of those workers by 24 percent.

I explain further in this interview for Yahoo! Finance.

The interviewer, by the way, seems to be economically illiterate.

He apparently believes that we can reduce inequality by pricing poor people out of the job market. He also blames companies for sitting on piles of cash, presumably unaware that firms only will invest if there are profitable opportunities.

Minimum Wage CartoonAt one point, I delicately state that one of his questions “betrays a certain lack of historical knowledge,” which is a polite way of saying “you’re either lying or you have no idea what you’re talking about.”

Ultimately, I try to help him understand by comparing fast-growing economies such Hong Kong and Singapore, which have relatively low burdens of government, with slow-growth economies such as France and Italy, where politicians ostensibly seek to “help” people with various forms of intervention.

I’m not sure I made any progress, so feel free to suggest other ways of convincing skeptics that freedom is better than statism.

Anyway, for those who want more information, this video explains the underlying economics of the minimum wage. We also have plenty of evidence (see here and here) that unemployment rose following the most recent hike in the minimum wage.

_______________________

Thank you so much for your time. I know how valuable it is. I also appreciate the fine family that you have and your commitment as a father and a husband.

Sincerely,

Everette Hatcher III, 13900 Cottontail Lane, Alexander, AR 72002, ph 501-920-5733, lowcostsqueegees@yahoo.com

Related posts:

Why do the liberals want to increase unemployment more by increasing minimum wage?

Williams with Sowell – Minimum Wage Why do the liberals want to increase unemployment more by increasing minimum wage? With Unemployment Already High, Why Are Leftists Pushing for an Increase in the Minimum Wage? September 3, 2012 by Dan Mitchell The unemployment rate has been stuck above 8 percent ever since Obama pushed through his ill-fated […]

Minimum wage could be eliminating jobs

Minimum wage could be eliminating jobs Liberals just don’t have a clue. The Job-Killing Impact of Minimum Wage Laws Uploaded by CFPEcon101 on Jun 14, 2010 Minimum wage laws seem like a good idea, but arbitrarily mandating a certain wage can have terrible consequences. This CF&P Foundation mini-documentary reveals that business are not charities, so if the […]

Minimum wage could be eliminating jobs

Minimum wage could be eliminating jobs Liberals just don’t have a clue. The Job-Killing Impact of Minimum Wage Laws Uploaded by CFPEcon101 on Jun 14, 2010 Minimum wage laws seem like a good idea, but arbitrarily mandating a certain wage can have terrible consequences. This CF&P Foundation mini-documentary reveals that business are not charities, so […]

President Obama and Alternative Minimum Tax

President Obama and Alternative Minimum Tax Dan Mitchell does it again. He is always right on the mark. CPAs Celebrate as Obama Proposes to Create a Turbo-Charged Alternative Minimum Tax Posted by Daniel J. Mitchell Wow, this is remarkable. The alternative minimum tax (AMT) is one of the most-hated features of the tax code. It […]

President Obama and Alternative Minimum Tax

President Obama and Alternative Minimum Tax Dan Mitchell does it again. He is always right on the mark. CPAs Celebrate as Obama Proposes to Create a Turbo-Charged Alternative Minimum Tax Posted by Daniel J. Mitchell Wow, this is remarkable. The alternative minimum tax (AMT) is one of the most-hated features of the tax code. It […]

Video clips of Jonah Goldberg and an interview about his book “Liberal Fascism” (Part 3)

Liberal Fascism (5) – Jonah Goldberg ** UNEDITED **   Uploaded by TylerNull on Feb 17, 2008 PLAYLIST: http://www.youtube.com/view_play_list?p=C20E954A7632DCFD Jonah Goldberg discusses his new book, “Liberal Fascism: The Secret History of the American Left, From Mussolini to the Politics of Meaning”, at The Heritage Foundation on C-SPAN2. 09 JAN 08. ____ Below is  a portion […]

Open letter to President Obama (Part 245)

Williams with Sowell – Minimum Wage President Obama c/o The White House 1600 Pennsylvania Avenue NW Washington, DC 20500 Dear Mr. President, I know that you receive 20,000 letters a day and that you actually read 10 of them every day. I really do respect you for trying to get a pulse on what is […]

Ark Times blogger claims California is better than Texas but facts don’t bear that out (3 great political cartoons)

I got on the Arkansas Times Blog and noticed that a person on there was bragging about the high minimum wage law in San Francisco and how everything was going so well there. On 2-15-13 on the Arkansas Times Blog I posted: Couldn’t be better (the person using the username “Couldn’t be better)  is bragging […]

Advertisements
Post a comment or leave a trackback: Trackback URL.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: