Home
/
RELIGION & LIBERTY ONLINE
/
Seattle’s Foolish Experiment Will Be a Lesson for America
Seattle’s Foolish Experiment Will Be a Lesson for America
Jul 1, 2024 5:08 AM

When I was growing up I had a buddy—let’s call him “Bob”—who was constantly asking, “What happens if we do . . . ?” Bob’s curiosity, however, only led him to wonder about foolish actions. He never pondered, for example, what would happen if we all volunteered at the senior citizens center. Instead, his thinking ran more along the lines of what would happen if we jumped off the senior citizens center.

The reaction of me and the rest of my friends was always, “Let’s find out!” But we were more prudent than Bob (or maybe just more cowardly) so we’d encourage him to try whatever reckless idea he had in mind so we could learn from his experience. We learned, for instance, that if jump off the 3-story senior citizens center, a stack of cardboard boxes will not be enough to sufficiently break your fall.

Bob’s shenanigans would daily provide for us what social scientists would call a “natural experiment.” A natural experiment is a study of the effect of an independent variable, which has not been planned or manipulated by the researchers, on a dependent variable. (The word ‘natural’ in the term natural experiment therefore refers to an event that is not planned by the researchers.)

The city of Seattle is about to pull a Bob, by foolishly raising the minimum wage to $15 per hour. The effect on the citizens of Seattle will be almost entirely harmful. But it will provide a natural experiment on the effect of raising the minimum wage laws that the rest of American can learn from. Anyone who isn’t already convinced that increasing the minimum wage has a detrimental impact on employment and harm minority workers will, in a few years, have solid proof. We will all be able to look to Seattle to see the difference between good, albeit naive, intentions and sound economic policy.

Here are some of the effects I predict the policy willhave in the next three years:

Unemployment will increase for low-wage workers — It’s true that economists disagree about the effects of the minimum wage on employment and the living standards of minimum wage earners. But almost all of the disagreement is about relatively small increases—less than 20 percent. Seattle is about to increase the minimum wage by 61 percent — over three times the detrimental rate. Almost all economists agree that significant increases to the minimum wage or attempts to bring it in line with a “living wage” (e.g., $12-15 an hour) would lead to significant increases in unemployment.

Employers will discriminate against low-skill workers — Milton Friedman once described the minimum wage as a requirement that “employers must discriminate against people who have low skills.” As Anthony Davies explains, “the minimum wage prevents some of the least skilled, least educated, and least experienced workers from participating in the labor market because it discourages employers from taking a chance by hiring them. In other words, pete for jobs on the basis of education, skill, experience, and price. Of these factors, the only one on which the lesser-educated, lesser-skilled, and lesser-experienced worker pete is price.”

Young African Americans will have a harder time getting jobs —Employment among African American males between the ages of 16 and 24 isdisproportionately responsive to the minimum wage. A ten percent increase in the minimum wage would reduce employment by 2.5 percent for white males between the ages of 16 and 24, 1.2 percent for Hispanic males between the ages of 16 and 24, and 6.5 percent for African American males between the ages of 16 and 24. Professors Even and Macpherson estimate that in “the 21 states fully affected by the federal minimum wage increases in 2007, 2008, and 2009,” young African Americans lost more jobs as a result of minimum wage hikes than as a result of the macroeconomic consequences of the recession.

Seattle will learn why you don’t elect Socialists — Imagine someone really despised the city of Seattle and wanted to dream up the best ways to destroy the city’s economy. If they were really clever they would try to find a way to get Seattleites to elect Kshama Sawant to the city council.

Sawant, a member of theSocialist Alternative party, tends to support any policy that has been proven to ruin cities (e.g., rent-control). After she was elected, one of her first actions was to attempt to get workers at Boeing to“take-over” the Everett Boeing plant. Once they illegally seized the property they could, she said, build things everyone can use:“We can re-tool the machines to produce mass transit like buses, instead of destructive, you know, war machines.”

Like most Socialists in America, Sawant lives in a very different reality than the rest of us. Not surprisingly, she is the main instigator of the new wage increase. Perhaps once Seattle realizes Sawant led the revolution to ruintheir economy they’ll be more hesitant in the future about electing clueless radicals to run their city government. If nothing else, they’ll know exactly who to blame for getting them into this mess.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
6 Quotes: Russell Moore on Religious Conservatism
“There is a kind of religious conservatism that can simply be another form of nostalgia,” says Russell Moore, “There is a kind of religious conservatism that can easily present itself as time travelers from the past. Those who are seeking to bring forward the values of the 1950s. We are not time travelers from the past. We are pilgrims from the future.” Moore, the president of the Ethics and Religious Liberty Commission of the Southern Baptist Convention, recently delivered a...
The Nightmare of Living in the Past
Stories can convey, so much better than raw data can, the human effects of the increased living standards that market-driven innovation has provided us, says Steven Horwitz. He notes how theBBC and PBS series 1900 Houseshows what a nightmare it was to live at the turn of the twentieth century. Mothers in particular had it especially rough: She has to get up early to make sure the range is warm enough to make breakfast, and by the time she is...
Remember the AIDS/Cancer Drug Whose Price Increased 5,000 percent Overnight? The Free Market Came Up With a Solution.
Last month Turing Pharmaceuticals felt the backlash after a medication they sold for $1 a pill in 2010 increased overnight to $750 a tablet. Politicians like Hillary Rodham Clinton and Bernie Sanders were quick to claim that this is why we needed more government intervention in the healthcare system. But at the time I pointed out that the reason Turing was able to raise the price so spectacularly was not because of a failure of the free market but because...
How Faithful Churches Create Economic Flourishing
What is the pastor’s role in affirming the various callings within hiscongregation? How might churches empower the people of Godin pursuing vocational clarity and economic transformation? How can webetter encourage, equip, and empower othersin engaging theircultures munities? In a talkfor theOikonomia Network, theologian and author Charlie Self explores these questions and more, relaying many of the themes ofFlourishing Churches and Communities, his Pentecostal primer on faith, work, and economics. “Faithful churches create munities,” says Self, “bringing the joy, peace, and...
Why Being Poor is Too Expensive
In the critically acclaimed, though rarely seen, movie Killer of Sheep (1978) there’s a scene that highlights why being poor can be so expensive. The film is about a black family living in the Watts section of Los Angeles in the 1970s. In an attempt to escape the drudgery of their everyday life, the family decides to join some friends one Saturday in taking a day trip out to the country. Before they can even get out of Watts, though,...
Video: Rev. Robert A. Sirico At The Acton Institute 25th Anniversary Dinner
On October 21st, the Acton Institute celebrated its 25th Anniversary with a dinner at DeVos Place Convention Center in Grand Rapids, Michigan. The keynote address for the evening was delivered by Acton President and Co-Founder Rev. Robert A. Sirico, who reflected on how the world has changed in the quarter century since he and Kris Mauren founded the Institute, and on what challenges those of mitted to a free and virtuous society face as Acton embarks upon its next twenty-five...
The frontier spirit of ‘The Martian’
A new film set on Mars taps into the quintessential American story, says Dylan Pahman in this week’s Acton Commentary. After the Russian cosmonaut Yuri Gagarin became the first man to travel to outer space in 1961, Nikita Khrushchev remarked, “Gagarin flew into space, but didn’t see any god there.” The Soviets would not pass up an opportunity to deride religion, even though, reportedly, Gagarin himself was a Russian Orthodox Christian. Americans, by contrast, are the sort of people who...
Are You Pro-Union or Pro-Minimum Wage?
During CNN’s Democratic debate, presidential candidate, senator from Vermont, and self-proclaimed socialist Bernie Sanders promised that if elected he would work to “raise the [federal] minimum wage to $15 an hour.” From an economic point of view, this policy would run the risk of sparking a wage/price spiral, where wages are tied to a cost-of-living index and their increase, in turn, raises the cost of living, sending inflation out of control and ultimately working against the intended goal of helping...
How Religion is Redistributing the World’s Wealth
Dramatic religious shifts over the next few decades will change the distribution of wealth around the globe, according to a new study by the Religious Freedom & Business Foundation. During this period, notes the study, the number of people affiliated with a religion is expected to grow by 2.3 billion, from 5.8 billion in 2010 to 8.1 billion in 2050. The growth in religious populations will also bined with religious diversity, which will change the makeup of the world economies:...
As You Sow’s Multi-Faith Scientism
This year is shaping up as an annus horribilus for those opposed to public and private policy climate-change “solutions” that would reverse decades of advancements in wealth creation and the obliteration of poverty. This year’s capper is the ing Sustainable Innovation Forum in Paris, France, which will be held December 7-8 under the auspices of the at the 21st Conference of Parties (COP21). As with any jet-airliner pilgrimage of this sort, we can anticipate all sorts of mischievous responses to...
Related Classification
Copyright 2023-2024 - www.mreligion.com All Rights Reserved