Minimum Wage Reality in America

Ericka Andersen / May 16, 2011

Economist Walter Williams knows that minimum wage laws are hurting poor, African-American teenagers and his new book, “Race and Economics: How Much Can Be Blamed on Discrimination?”, attempts to dispel the myth that higher minimum wage laws help. Simple economics recognizes that if the price of labor increases, employer demand for labor decreases.

When the minimum wage increased from $5.15 to $7.25 between 2006 and 2009 – a dramatic 40% rise – unemployment noticeably took a turn for the worse and the trend continues today.

Thanks to the minimum wage; the poor, teenagers and specifically young, African-American males have lost many opportunities to find work. The well-intentioned increase in minimum wage has done nothing to help those for which it was intended. More importantly, the skills learned in low-paying jobs are essential for movement up the career ladder and earning higher pay later. Without the opportunity to earn the low-ladder skills, they miss the boat on ever finding good-paying jobs. (more…)