Republicans and the minimum wage

At last night’s debate, some of the Republicans candidates were asked if they were in favor of raising the minimum wage:

TRUMP: I can’t be Neil. And the and the reason I can’t be is that we are a country that is being beaten on every front economically, militarily. There is nothing that we do now to win. We don’t win anymore. Our taxes are too high. I’ve come up with a tax plan that many, many people like very much. It’s going to be a tremendous plan. I think it’ll make our country and our economy very dynamic.

But, taxes too high, wages too high, we’re not going to be able to compete against the world. I hate to say it, but we have to leave it the way it is. People have to go out, they have to work really hard and have to get into that upper stratum. But we can not do this if we are going to compete with the rest of the world. We just can’t do it.

CAVUTO: So do not raise the minimum wage?

TRUMP: I would not do it.

So, Mr Billionaire thinks people make too much money in the US.

CAVUTO: Dr. Carson, you have long bemoaned this lackluster recovery. And this Facebook map show Americans share your concern. The green represents how the jobs issue is resonating all across the nation, especially here in the state of Wisconsin.

You suggested one minimum wage does not fit all, and that perhaps we should offer a lower or starter wage for young people. Those protesters outside are looking for $15 and nothing less. Where are you?

CARSON: Well, first of all, delighted to be here. My family’s here, and my little granddaughter, who’s three years old, said she wanted to come to the debate. So this is very cool.

As far as the minimum wage is concerned, people need to be educated on the minimum wage. Every time we raise the minimum wage, the number of jobless people increases.

It’s particularly a problem in the black community. Only 19.8 percent of black teenagers have a job, who are looking for one. You know, that — and that’s because of those high wages. If you lower those wages, that comes down.

You know, I can remember, as a youngster — you know, my first job working in a laboratory as a lab assistant, and multiple other jobs. But I would not have gotten those jobs if someone had to pay me a large amount of money.

But what I did gain from those jobs is a tremendous amount of experience, and how to operate in the world and how to relate to different people, and how to become a responsible individual. And that’s what gave me what I needed to ascend the ladder of opportunity in this country.

That’s what we need to be thinking about. How do we allow people to ascend the ladder of opportunity, rather than how do we give them everything and keep them dependent?

CAVUTO: So, sir, just to be clear, you would not raise it?

CARSON: I would not raise it. I would not raise it, specifically because I’m interested in making sure that people are able to enter the job market and take advantage of opportunities.

Umm, Ben? Unless there was something weird going on at your first job, you made the minimum wage–there didn’t need to be a lower ‘starter’ wage for you to get that job. Oh, if you are working at a job, no one is ‘giving you everything’ you earn it and they will be less dependent if they are paid more–obviously.

RUBIO: Well, let me begin by answering both the first question and this one, because they’re related. As I’ve said many times before, my parents were never rich people. My father was a bartender. My mother was a maid. They worked for a living. But they were successful people, because, despite the fact that they weren’t well educated and had those jobs, they made enough money to buy a home in a safe and stable neighborhood, retire with dignity, leave all four of their children better off than themselves.

We call that the American dream, but in fact, it’s a universal dream of a better life that people have all over the world. It is a reminder that every country in the world has rich people.

What makes America special is that we have millions and millions of people that are not rich, that through hard work and perseverance are able to be successful.

The problem is that today people are not successful working as hard as ever because the economy is not providing jobs that pay enough. If I thought that raising the minimum wage was the best way to help people increase their pay, I would be all for it, but it isn’t. In the 20th century, it’s a disaster.

If you raise the minimum wage, you’re going to make people more expensive than a machine. And that means all this automation that’s replacing jobs and people right now is only going to be accelerated.

Here’s the best way to raise wages. Make America the best place in the world to start a business or expand an existing business, tax reform and regulatory reform, bring our debt under control, fully utilize our energy resources so we can reinvigorate manufacturing, repeal and replace Obamacare, and make higher education faster and easier to access, especially vocational training. For the life of me, I don’t know why we have stigmatized vocational education. Welders make more money than philosophers. We need more welders and less philosophers.

Hey Ben and Marco, here are a couple graphs (data here) that dispute your comments that increasing the minimum wage increases unemployment and has been a disaster:

MinUnem

Hmm, the minimum wage increased pretty steadily from 1948 until its peak in 1968 but I don’t see anything close to a steady increase in unemployment.

MinGDP

There doesn’t seem to be much association between the minimum wage and the increase in per capita GDP, but if you notice the regression line I added you might note that it tends to increase a bit more when there’s a higher minimum wage.

Oh and here’s a letter signed by more than 600 economists that says we should increase the minimum wage. Gallup hasn’t asked about this for a while but in 2013, 76% favored raising the minimum wage to $9.

To be fair, here’s the other person who commented on this:

KASICH: First of all, let me just say that, in the state of Ohio — and I’m the only acting executive on — on this stage today — we do have a moderate increase in the minimum wage.

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