Author Topic: Minimum Wage Cruelty; Walter E Williams  (Read 859 times)

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Offline The Village Idiot

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Minimum Wage Cruelty; Walter E Williams
« on: May 26, 2010, 09:10:18 AM »
http://townhall.com/columnists/WalterEWilliams/2010/05/26/minimum_wage_cruelty_update

excerpt

"Minimum Wage Cruelty" (4/14/10) was my column about the unemployment effects of Congress' 2007 minimum wage increase on the canning industry in American Samoa, a U.S. territory in the far Pacific Ocean. The 2007 legislation mandated 50 cents annual increases in Samoan minimum wages until it reached the U.S. mainland's hourly minimum of $7.25. In response, Chicken of the Sea International moved its operation from Samoa to a highly automated cannery plant in Lyons, Ga. That resulted in roughly 2,000 jobs lost in Samoa and a gain of 200 jobs in Georgia. Prior to minimum wage increases, Samoan wages were about $3.25 an hour. With the legislated increases, Samoa's minimum wage is $5.25. So the question is: Which is preferable for the Samoan worker -- being employed at $3.25 an hour or being unemployed at $5.25? Which buys more of life's essentials?


excerpt