Category Archives: Immigration

The Minimum Wage Lie


When “progressives” say “the minimum wage hasn’t kept up with inflation”, they’re lying.

Not shading, the truth, exaggerating, or interpreting things differently… they are flat out lying.

… And what’s more, the ones who made up the lie in the first place, know they’re lying (the rest mostly just parrot what they’ve been told).

What exactly would “keeping up with inflation” mean?

The minimum wage has been $7.25 an hour since 2009.

In 1938, when the federal minimum wage was established, it was $0.25 an hour. In constant dollars (adjusted for inflation) that’s $4.19 as of 2014.

So, not only has the minimum wage kept up with inflation, it’s nearly doubled it.

Ok.. well what about more recently?

Minimum wage 15 years ago in 2000: $5.15, or $7.06 in constant dollars

Minimum wage 20 years ago in 1995: $4.25, or $6.59 in constant dollars.

Minimum wage 25 years ago in 1990: $3.80, or $6.87 in constant dollars.

Minimum wage 30 years ago in 1985: $3.30, or $7.25 in constant dollars.

Funny… that’s exactly what it is today… How shocking.

So, for 30 years, the minimum wage has not only kept up with inflation, for most of that time it’s been ahead of it.

So, how are they lying?

The way “progressives” claim minimum wage hasn’t been “keeping up with inflation”, is by comparing today, with the highest level it has ever been; almost 50 years ago, in 1968, when the minimum wage went to $1.60 an hour ($10.86 in constant dollars).

This was a statistical anomaly.

There’s a long and loathsome tradition of lying with statistical anomalies.

At $1.60 an hour, the minimum wage in 1968 was a huge 20% spike from what it had been just 3 years before in ’65, more than 40% above what it had been in 1960, and nearly double what it had been 12 years before in 1956 when politicians started throwing minimum wage increases faster and bigger (again, all in constant dollar terms. The minimum wage at the beginning of 1956 was about $6.30 in constant dollars)

In constant dollar terms, the minimum wage today, is about the same as it was in 1962 (and as I showed above, 1985).

It just so happens that from 1948 to 1968 we had the single largest wealth expansion over 20 years, seen in the history of the nation (about 5-8% annual growth)… Which then crashed hard starting at the end of ’68.

From 1968 to 1984, the U.S. had 16 years of the worst inflation we ever saw, and the purchasing power of ALL wages fell significantly, as wages failed to come even close to keeping up with inflation (we saw 13.5% inflation in 1980 alone, which is about what we see every 4 years today).

It took until 1988 for real wages to climb back to their 1968 constant dollar level, because we were in a 20 year long inflationary recession, complicated by two oil shocks and a stock market crash (actually a couple, but ’87 was the biggest one since ’29).

However, the minimum wage was boosted significantly in that time period, far more than other wages rose, and stayed above the 1962 water mark until the end of that high inflationary period in 1984, declining slightly until 1992, then spiking and declining again until 1997 etc… etc…

By the by… household income in 1968? appx. $7,700, which is about the same as today in constant dollar terms… About $51,0000 (about 8% more than it was in 1967, at $47k). Which is almost exactly what it was in 1988 as well. Household income peaked in 1999 and 2007 at around $55,000, and troughed in 1975 at around $45,000

Of course, income was on a massive upswing from 1948 to 1968 (and in fact had been on a massive upswing overall since 1896 with the exception of 1929 through 1936). In 1941 household income was about $1500 ($24,000 constant), in 1948 $3,800 ($37,000 constant).

Like I said, it was the single greatest expansion in real income and wealth over a 20 year period, in American history.

1968 was a ridiculous historical anomaly… Not a baseline expectation.

So, From 1964 to 1984, the minimum wage was jacked artificially high (proportionally far above median wage levels), and “progressives” chose to cherry pick the absolute peak in 1968 from that part of the dataset, in order to sell the lie.

A living wage?

As to the minimum wage not being a living wage… No, of course its not. It never was, its not supposed to be, and it never should be.

The minimum wage is intended to be for part time, seasonal workers, entry level workers, and working students.

Only about 4% of all workers earn the minimum wage, and less than 2% of full time workers earn the minimum wage.

Minimum wage is what you pay people whose labor isn’t worth more than that. Otherwise everyone would make minimum wage. But since 98% of full time workers can get more than minimum wage, they do so.

What should the minimum wage be?


Wait, won’t everyone become poor suddenly?

No, of course not. Literally 98% of full time workers already get more than minimum wage. If we abolished the minimum wage, most of them wouldn’t suddenly be paid nothing.

Wages should be whatever someone is willing to work for. If you’re willing to work for $1, and someone else isn’t, you get the job. On the other hand, if an employer is offering $10 and no-one is willing to take the job for that, they need to offer $11, or $12, or whatever minimum wage someone is willing to take.

If you don’t want to work for $7.25 an hour, don’t take the job. If nobody offers you more than that, too bad, but that’s all your labor is worth.

If you are willing to work for someone for $7.00, and they’re willing to pay you $7.00, what right does some “progressive” have to tell either of you, that you can’t work for that much?

No-one is “exploiting the workers”, if those workers took the jobs voluntarily, and show up for work voluntarily… If all you can find is a job for less than what you want to work for, you’re not being exploited, THAT’S ALL YOUR LABOR IS WORTH TO THOSE EMPLOYERS.

You may think your labor worth more, but things aren’t worth what you want them to be worth, they’re only worth what someone else is willing to pay for them.

But let’s be generous…

All that said, I don’t think we’ll be able to eliminate the minimum wage any time soon.

So, to those “progressives” who would say “let’s make the minimum wage keep up with inflation”, I agree wholeheartedly… Let’s make it $4.19.

Oh and if you don’t believe me on these numbers, they come from the department of labor, the department of commerce, and the census. If I’m lying to you, it’s with the governments own numbers… the same ones “progressives” are lying to you with. 

I am a cynically romantic optimistic pessimist. I am neither liberal, nor conservative. I am a (somewhat disgruntled) muscular minarchist… something like a constructive anarchist.

Basically what that means, is that I believe, all things being equal, responsible adults should be able to do whatever the hell they want to do, so long as nobody’s getting hurt, who isn’t paying extra

What Republicans Should Do With Their Victory

Veronique de Rugy, writing for the National Review Online, nailed it in her piece entitled “What the New Republican Congress Should and Shouldn’t Do.” Recognizing the GOP victory reflects frustration with the current administration, rather than endorsement of any GOP mandate, she lists suggestions for what Republicans should and should not attempt in the next few years. I agreed with every item on her list and urge everyone to read it in its entirety.

On her list of Do’s: continuing to work toward repeal of Obamacare and passing as many piecemeal anti-Obamacare bills as possible via budget rules; radically reforming the FDA using the opportunity of its reauthorization in 2015; reforming the corporate income tax (de Rugy proposes doing away with it, but she would settle for lowering it below the rate in other countries); and ending the War on Drugs.

Her list of Do Not’s include: warmongering and nation-building; a federal minimum wage increase; reauthorizing the Ex-Im Bank charter; enacting an internet sales tax; creating any new entitlement program; cutting taxes without paying for it with spending cuts; or increasing spending.

I thought her list was pretty comprehensive, but I have seen good additions from my fellow contributors at the Liberty Papers over the last few days. In a post on his Facebook page, Kevin Boyd added education reform and immigration reform as “Do’s.” In a post-election essay here at The Liberty Papers, he added:

Here’s what the GOP needs to do, they need start giving the American people reasons to vote for them in 2016. Start passing and forcing Obama to veto no-brainer bills on tax reform, spending cuts, healthcare reform, crony capitalism repeal, ending Common Core, etc. Also, the GOP must restrain the Ted Cruz types from picking unnecessary fights for publicity. They cannot let the Tea Party dominate messaging. Finally, Republicans must step up outreach towards minorities and young people, starting now.

I also agreed with Tom Knighton’s conclusion that the GOP should not assume it has been given a mandate for social conservatism on the national level:

[A]lso in Tuesday’s results were…new locations approving marijuana use on some level… Polls show support for marijuana (at least for medical use) and support for gay marriage. Translation: There’s zero reason to believe that the American people actually support social conservatism.

… You see, the American people don’t want that. The[y] like the idea of freedom, more or less.

What about you? Can you think of any other important Do’s or Do Not’s for the new Republican Congress? If so, share them in the comments.


Sarah Baker is a libertarian, attorney and writer. She lives in Montana with her daughter and a house full of pets.

Maybe its Immigration Policy That is the Problem?

Immigration, especially of the illegal variety, is one of those important issues that is difficult to have a rational discussion about. The discussion quickly devolves into the need to “secure” the border with a wall or fence…at least on the Southern border (the Northern border is more porous but I don’t recall the last time anyone mentioned anything about building a wall or fence there). Though a fence probably would slow down illegal border crossing somewhat, all a determined border crosser needs to get over a 20’ wall is a 21’ ladder (or a shovel and a great deal of patience). Of course a fence would have zero impact on those who overstay their visas.

Most opponents of illegal immigration say that before any reforms to immigration policy are made, the border needs to be secured (the points mentioned above notwithstanding). I happen to think they have it backwards. If anything, immigration policy should be focused on those who are here already. The idea that every single illegal immigrant can be rounded up and sent back to their country of origin is absurd. There are simply too many of them.

I think the important question that should be asked is: why aren’t these illegal immigrants not going through the immigration process legally? Why would so many people risk everything to pay a Coyote to sneak their families over the border when there is a process in which they can legally immigrate to the U.S.? What part of “legal” immigration don’t they understand?

This infographic (click on the image to enlarge) by Reason does a great job illustrating just how difficult going through the U.S. immigration process is (for the rest of us who don’t know).

Maybe if the immigration process was a little less of a cumbersome, bureaucratic nightmare, maybe fewer people would break the law in coming here.

The Modern Republican Party is a Special Kind of Suck (Part 2 of 3)

Part 1

Confusing Economic Policy of Suck
I’m sure there are many other areas where Romney went wrong but I think most of the rest of this special kind of suck is courtesy of other Republicans. During the Republican primary, the “anyone but Romney” crowd was so desperate to eliminate Romney that they resorted to a line of attack one would expect to come from Democrats. Many Republicans seem to forget that the attacks against Romney concerning Bain Capital were first leveled by Newt Gingrich and Rick Perry at campaign rallies, in the primary debates, in their campaign ads, and in anti-Romney super PAC ads. Perry called Romney a “vulture capitalist.” The Obama campaign picked up this line of attack where Gingrich and Perry left off. In swing states like Ohio, this message had basically been pounded since before the state’s primary and never let up for the rest of the campaign.

Once charges like these are made by Republicans who are supposed to be proponents of free market capitalism, it’s kind of difficult for people who actually understand how the free market works to explain why business practices employed by Bain Capital are not only legitimate, but also necessary. In this Occupy Wall Street era we live in, there seems to be an attitude that no one is ever supposed to lose his or her job and that every job is not only necessary but equally valuable.

Companies like Bain invest in businesses in trouble and try to make them profitable. In making a business profitable, sometimes this means that some people are going to lose their jobs. Like a doctor who is trying to save the patient’s life, sometimes a limb needs to be amputated. No one wants to lose an arm or a leg in such a scenario but most who face such a dilemma would rather lose an arm or leg than lose his or her life. If the amputation is done soon enough and correctly, the patient lives. Other times, however; even despite taking such drastic measures, the patient still dies. The same is true for some of the companies Bain tried to rescue. Of course no one wants to think of themselves as a limb that needs to be amputated in order to save their company*.

Immigration Policy of Suck
In addition to the mixed messages concerning Capitalism, the Republican Primary debates took on a very harsh tone concerning immigration. Any candidate who suggested that the idea of rounding up each and every illegal immigrant was impractical and that perhaps deporting individuals who were otherwise productive members of our society, said candidate would be accused of advocating “amnesty” – a four letter word among conservative Republicans.

Such harsh anti-illegal immigration rhetoric carried over into the general campaign when President Obama (rightly, in my view) made an executive order to allow individuals who were brought here illegally as children under the age of 16 to stay and have temporary work permits. This was an outrage among Republicans because, you know, the law is the law.

As Gary Johnson pointed out on several occasions during the campaign, while it’s true that we live in a nation based on the rule of law, too many Republicans fail to understand that the laws are changeable. And as I pointed out at the time, when there are more than 27,000 pages of federal law on the books with over 4,500 criminal laws, this necessarily means that any president would have to prioritize and choose which laws he will enforce and which he will not. When the number of laws is this numerous, it’s the same as having no rule of law at all.

Immigration is an issue the GOP needs to figure out and figure out quick as the Hispanic population will become an increasingly major factor in future elections (even GOP strongholds like Texas might eventually turn blue due to this demographic reality). Should we be surprised that the Hispanic population overwhelmingly supported Obama over Romney given the rhetoric?

It’s time to reexamine the notion that the border should be secure first before any comprehensive reforms are made. I think this is exactly backwards. If the legal immigration process wasn’t such a bureaucratic nightmare to begin with, I doubt seriously that illegal immigration would remain an issue.

This much needed debate** is not going to be very productive if every time someone proposes something other than building a 20’ tall fence along the Southern border, checking ID’s of everyone with brown skin, and rounding up every illegal immigrant regardless of circumstances, s/he is accused of promoting amnesty. Even more importantly, whatever the GOP decides immigration policy should be, they need to soften their tone and be mindful that we are talking about human beings here. I think it’s safe to assume that just about every legal immigrant (especially from Mexico) has at least a few family members who are here illegally. They do not like to think of their relatives as “invaders” who need to be rounded up. These people vote too.

*And I’m writing as someone who has been the limb being amputated. Just a couple of years ago, it was my department that needed downsized to save the company…at Christmas time no less. I’m happy to say that the downsizing measure did in fact save the department and six months later, they called me back and have been working there ever since.

**Doug and Kevin have each offered up some ideas for immigration reform that I think warrant consideration.

Part 3

Do We Really Want the President to Enforce ALL Federal Laws?

The Rule of Law, theoretically at least, is superior to the arbitrary Rule of Men. For most of human history, the law has been subject to the whim of a head of state be s/he a monarch, czar, dictator, emperor, etc. James Madison and the framers of the U.S. Constitution wisely determined that the document would be the “supreme law of the land” and everyone from the President to the peasant would be subject to the same law.

But what happens to the Rule of Law when the laws become too vague, too numerous, too unpredictable, and too unjust? According to a 2008 Louisiana State University study (referenced in this article), there were over 4,500 federal crimes on the books. This does not include the thousands more regulations that also carry criminal penalties.

So my question to conservatives and some libertarians who have been critical of President Obama’s executive order to allow individuals who were brought illegally across the border as children under the age of 16 to have temporary work permits is as follows: Do you believe that the president should enforce each and every one of the over 27,000 pages of federal code and prosecute everyone who can be accused of any of the 4,500 + crimes? Should the president send uniformed men with guns to raid the Gibson Guitar Corp, dairy farms who sell raw milk to the public, and medical marijuana dispensaries which operate pursuant to state law? If the argument is that the president is shirking his responsibility by picking and choosing the laws he will “faithfully execute,” the answer necessarily must be “yes.”

Obviously, the federal government even as large as it is could not possibly enforce every single federal law. Assuming for a moment the federal government could enforce every single federal law and regulation, as people who claim to value personal liberty above all else, is this something that would in any way be compatible with liberty?

I think not.

When the federal code is so full of laws and regulations, it’s the same as having no Rule of Law at all. The president necessarily must decide which laws to enforce and which to ignore or at the very least prioritize how he will execute the law. As immigration laws go, it seems to me that deporting individuals who were educated here, not criminals, and pay taxes should be a much lower priority to be deported or jailed than someone who as an adult illegally immigrated, stole someone’s identity, and committed a host of other crimes.

Beyond the sheer volume of laws and regulations, I do think there are instances when the president should NOT enforce the law if he, in good faith, believes the law violates the constitution and/or is unjust. Who among us today would argue that when the Fugitive Slave Act of 1850 was in force that a president who refused to enforce such a law was acting like a king because he was usurping the “will of the people”? I would also point out that when the Fugitive Slave Act was the law of the land, it wasn’t at all unconstitutional even though most sane Americans today, regardless of political affiliation and/or philosophy would say the law was immoral. If the constitution itself violates Natural Law (i.e. does not recognize the rights of life, liberty, and property for all human beings), then it too should be nullified in those instances.

Nullification presents problems of its own, however. I recognize that nullification of laws passed by congress presents a possible constitutional crisis. We certainly do not want an all-powerful executive branch that can ignore the congress and the courts, so what is the solution?

The solution, however politically difficult it would be, would be to repeal the vast majority of the federal criminal code and much of the remaining 27,000 pages of statutes. The most sensible place to begin would be with the federal criminal code. Most criminal law should be dealt with at the state level anyway. I haven’t checked recently but I’m pretty sure that rape, murder, burglary, assault/battery, and fraud are crimes in all 50 states and in all U.S. territories.

Additionally, even those who believe the war on (some) drugs is good public policy, most states would most likely (unfortunately) continue locking up non-violent drug offenders without Washington’s help. The country we love would not descend into chaos if criminal law was dealt with almost entirely by the states. If we cannot trust the states to handle protecting individuals inside their borders, what is the point of even having states?

If the federal criminal code only dealt with crimes such as counterfeiting, treason, enacting legitimate interstate commerce regulations (to keep the trade among the several states “regular,” not what the interstate commerce clause has become thanks to SCOTUS), and yes, immigration policy, the president could and should conceivably enforce all the federal laws that are neither unconstitutional nor immoral. The president would no longer have the discretion to enforce the laws he favors and not enforce the ones he does not.

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