July 11, 2016
By Tim Worstall
This is really not good news at all – Bernie Sanders and his supporters have managed to commit the Democratic policy platform for the coming elections to the appalling idea of a national, Federal, $15 an hour minimum wage. Yes, I know, the general consensus these days is that raising the minimum wage is a just fine and dandy thing to do. But economists do not agree, not at all. There is general agreement that when the price of something rises then people buy less of it. There are such things as demand curve that slope upwards but they’re very rare indeed and we’re sure that labour isn’t one of them. What disagreement there is among economists is twofold. Firstly, an agreement that modest minimum wages have modest effects all over but there’s some disagreement about what modest means here. Secondly, an argument over whether the good effects are worth the ill. What absolutely no economist of repute is willing to say is that a Federal minimum wage, one that covers the entire country, of $15 an hour is going to be without ill effects.
The news itself:
Sen. Bernie Sanders’ effort to shape the Democratic Party’s election platform scored a major victory Friday with the approval of an amendment calling for increasing the federal minimum wage to $15 per hour.
The self-described “democratic socialist” from Vermont had repeatedly called for the increase during his surprisingly strong campaign for the Democratic nomination. His opponent, presumptive nominee Hillary Clinton, had backed a $12 minimum wage, while saying she approved a $15 minimum wage in certain places.
Read the full article at Forbes.com: Bernie Sanders Commits The Democratic Party Platform To The Disastrous $15 An Hour Minimum Wage