Minimum wages can have a more insidious effect. In research for my book "South Africa's War Against Capitalism" (1989), I found that during South Africa's apartheid era, racist unions, who'd never admit blacks, were the major supporters of higher minimum wages for blacks. Gert Beetge, secretary of South Africa's avowedly racist Building Worker's Union, in response to contractors hiring black workers, said, "There is no job reservation left in the building industry, and in the circumstances I support the rate-for-the-job [minimum wages] as the second best way of protecting our white artisans." Racists recognized the discriminatory effects of mandated minimum wages.
Dear Professor Williams,
As usual, spot on!
My own observation is that a raise in the minimum wage is an automatic pay increase for unions, government workers, and politicians!
I never get a raise due to minimum wage laws.
And, when I was running my own business (twice) where do I get my “minimum wage” from? I know that many a week I worked my tush off for zero income. Did I miss the memo of which “gummamint agenze” to submit my claim to? Interesting that because I formed my own business, I wasn’t eligible for unemployment “insurance” (another misnomer). If I could have kept all those “contributions” (nothing voluntary there), then I could have paid myself my minimum wage!
Any way just thought I’d chime in.