Minimum Wage: Minimal Response
My wealthy friend Ernesto stopped by the other evening,
sporting a new Hybrid Escalade and a readiness for political debate. Unlike last time, this time I was prepared.
“About time. Paul Ferrand,” Ernesto, said as I tilted the amber
bottle into his snifter.
“Just what you had asked for last time. Please, sit back, relax, and let’s catch up.”
“Catch up are exactly the words I would use, my friend,”
Ernesto chortled. “By the way, this is a solid good cognac, although I prefer Pour Moi, if you truly want to impress
me. But I digress. My goodness, it seems your union governor is
in some trouble as this election approaches.
He is falling behind in the latest polling, isn’t this true?”
“Well, not exactly, Ernesto, in several ways. Although, for the life of me I sometimes cannot
tell why, he has actually pulled slightly ahead of the challenger Rauner in the
last week. Why do you suppose that is
happening?”
“The union support, sadly, “ replied my distinguished
friend.
“I think not, Ernesto.
Not many of us union lackeys have any love or even voting predilection
for a governor who not only signed SB1 into law but promises to come back to a
plan B if the Court declares it unconstitutional. And the head of the Illinois Federation of
Teachers, Dan Montgomery’s statements the other night on WTTW to develop a plan
to work together for “pension reform” makes Quinn’s backup plan even more
threatening to union workers in Illinois.”
“And thus…” Ernesto smiled broadly, “you are between a
veritable stone and painful rock. So, will
you vote for the right man, Rauner?”
“Not so fast, Ernesto.
We are indeed between a veritable stone and painful rock – although I
might have said it differently. But
voting for a man who would cut if not ignore the need to increase the minimum
wage would hurt more than just me or my union lackeys. It would undermine the lives of hundreds of
thousands of workers in Illinois.”
“So you buy into the ridiculous advertising of the Quinn
commercial that Rauner is evil because he does not agree with an unnecessary
increase for the many, many young workers in entry level positions who are
learning about work?”
“Maybe before the Great Recession, Ernesto, but pickings
have been slim since then, and PEW Research would say that although about half
of the nearly 4 million workers in the U.S. who are at the federal minimum wage
are below age 24, nearly 21% are in ages up to 34. Those aren’t dropouts or students living in
basements, Ernesto. At age 25 to 34,
they’re looking to find living quarters, independence, food, and a future. There’s been no relief in many states for
these workers as the Consumers Price Index has increased over a decade or more.”
Ernesto scoffed: “Well, these increases – linked to the CPI
or even some arbitrary number like in Oregon -
will have no effect on the workers’ lives. As the CPI increases, their costs will
increase, so it is a null achievement.”
“Wait a moment, my good friend. It is A.L.E.C. and Rauner who claim that any
increase in the minimum wage is circular
and compounding. Now, you make the
same argument against increasing the lot of those who toil at lower wages. Keeping them unable to maintain the increases
in costs of living serves what purpose? Am
I to understand that your argument extrapolated is that paying people less than
what is needed to survive will benefit me (and them?) when it comes time to buy
a pair of shoes? Really? Isn’t that circular and compounding?”
“You union liberals personalize everything. When you increase the minimum wage, you
create inflation. And whenever
government plays with the possibility of increased minimum wages to match
increases in the CPI, we find ourselves suffering a worsening of the economy and
a resultant destruction of labor statistics.”
“I want to make sure I understand this, Ernesto. Although nearly 30% of the minimum wage working
population is over age 35 – that would be single mothers with children and
families making up for lost jobs during this recession – they should not be
given an increase in the minimum wage nor the match of any increase to the
Consumer Price Index under Rauner’s initial (and A.L.E.C. supported) position, and
you’d expect me to vote for him over Quinn?”
He didn’t screw you with your pensions, did he?”
“Not yet, but he promises that too, Ernesto.”
“So, are you the stone or the painful rock, my friend?”
“Pour another for me, okay, Ernesto?”
Rauner has said he would consider raising the minimum wage ONLY if workers comp protection for workers killed or injured on the job is substantially reduced.
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