Monday, October 18, 2010

What? Another Liberal Idea Doesn't Work?

From The Washington Times: "Just three years after a Democrat-led Congress imposed the federal minimum wage on two U.S. territories in the Pacific, lawmakers last month halted the program in its tracks, acknowledging the move had sapped thousands of jobs from American Samoa and the commonwealth of the Northern Mariana Islands.
The two-year delay in the case of American Samoa and one-year reprieve for the Northern Mariana Islands was imposed even as both parties have sparred over the effects of the minimum wage in the U.S. during the troubled economy.
"We said this increase would be harmful in 2007, and the Democrats did it anyway," said Rep. Patrick T. McHenry, North Carolina Republican. "It proves our point that the federal government setting wage rates is destructive to job creation, whether it's in American Samoa or western North Carolina."

http://www.washingtontimes.com/news/2010/oct/18/territories-snared-in-wage-debate/
Earlier this year, Nevada just raised the minimum wage in July to $8.25 without benefits and $7.25 for those who get health insurance. I believe this is in the State Constitution, as the voters voted on this in the good times.
Minimum wage kills jobs and it really doesn't help many people. When the minimum wage is raised, the employer, if they want to continue to make the same amount of money, have to either lay off some people or reduce hours. The hardest hit are people entering the workforce, either as a kid or an adult. The minimum wage freezes them out of the job market because there are fewer jobs out there.
Nevada needs to reduce the minimum wage in an effort to create more jobs and let kids and adults into the job market.
And no, companies are not going to pay people 50 cents an hour. The companies will pay what the market will bear.

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