More Americans Die of Poverty than Terrorism

[knight_shadow]

Originally Posted by Elephant Walk

Racism
Walter E. Williams came up with this simple work in theory:

If you went to a restaraunt and on the menu, you saw that the filet mignon and the hamburger was the same price. Naturally, you would prefer the higher grade dish -- the filet mignon. One would normally be hesitant to purchase the filet mignon due to the price. But when they are the same price, there is no reason not to.

Now apply this concept to the archetypal "racist white business owner" who has the ability to hire either a white person or a black person, who are both of equal strengths, weaknesses, education, etc. A black person who may come from a more disadvantaged community is likely to work for less in order to prove themselves and move through the ranks. When both are on the same wage scale (a minimum wage), there is no opportunity cost for racism and the "racist white business owner" can quickly hire the white worker with no qualms in his business sense.

Hate to quote a musician, but from one country-rock band:
"Ain't about no cotton fields or cotton picking lies
Ain't about the races, the crying shame
To the fucking rich man all poor people look the same"

Allegedly, African-American and white unemployment was practically equal before minimum wage. While that does not mean that minimum wage necessarily caused the disparity, I haven't ventured a guess at another cause.

Interesting.

I'm glad you qualified that with "in theory," since minimum wage doesn't exist in a vacuum. Other things (affirmative action, etc) help to mitigate situations like this.

denies the least educated/experienced the opportunity to gain education/experience
This is quite simple. The least experienced would (at least theoretically) be willing to work for less in order to gain employment and thus gain experience and eventually gain a greater wage. Thus, the minimum wage acts as an entry-barrier into the work marketplace.

I am not getting this point, though. Minimum wage in and of itself doesn't act as a barrier -- it's actions like the one in the previously quoted section. Hiring someone on at minimum wage does not prevent that person from gaining experience and moving up within the company.