Category Archives: The Welfare State

The Minimum Wage Lie

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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?

Zero.

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

Self-Ownership, Voluntaryism , and the Non-Aggression Principle as Explained in 2 Videos

In the course of an election year, its very easy to get caught up in the minutia of the various campaigns and election year issues. This is not to say that these issues are trivial; there were very many issues this election cycle which deserved the attention they received.

That said, I tend to think that immediately after an election is a perfect time for reflection. What is it we believe and why? What are our first principles and are we communicating these principles effectively?

I’ve read from various places that we are coming close to a “libertarian moment” or perhaps one is already underway. I do not know one way or the other to what extent this is true but I find that because outlets like Salon, Slate, and Alternet of the Left and a few anti-libertarian outlets on the Right are spending so much energy trying to convince their readers that such a moment isn’t happening quite encouraging. If libertarian ideas were not gaining at least some momentum these outlets would ignore us as in years past.

Of course these outlets do not make any effort to portray our ideas accurately. Its almost as if they go down the list of logical fallacies and hope their readers won’t do any independent research.

So what are the first principles of libertarianism then? This is a very big question, one which libertarians will often disagree. My view is that the first principles are self-ownership, voluntaryism, and the non-aggression principle (fellow TLP contributor Chris Byrne has a slightly different take worthy of consideration).

The videos embedded in this post do an excellent job illustrating these principles, especially for people who are not very familiar with them. The first video, which I have shared on various other occasions, is called “The Philosophy of Liberty.”

Pretty simple right? Share that video with your friends who get their information from Salon. They may still disagree and say that individuals should be looted taxed to promote social justice and egalitarianism but at least they will be exposed to these ideas.

This second video by Stefan Molyneux called “Voluntaryism: The Non-aggression Principle (NAP)” is slightly more advanced taking NAP to its idealistic conclusion (Molyneux is an outright anarchist and makes no bones about it on his podcasts).

Is this all Utopian pie in the sky? Perhaps. Humanity has a long way to go before we can begin to think about beating swords into plowshares. But this does not mean that we can’t each do our part to move in this direction. Upon closer examination, what it really boils down to is following the Golden Rule, only resorting to violence defensively and as a last resort. This principle remains true whether the issue is foreign policy, local policing, or your own home.

Hey FCKH8, I Have a Few ‘F-Bombs’ of My Own!

If you thought modern progressive feminists couldn’t be any more childish, you haven’t seen FCKH8’s latest viral video entitled: “F-Bombs for Feminism: Potty-Mouthed Princesses Use Bad Word for Good Cause.”

In the video (below), girls aged six to thirteen repeat progressive feminist bromides and talking points along with some F-bombs (as advertised) in an attempt to get this message to go viral (mission accomplished). As expected, the response by many is to be offended by having these ‘princesses’ use such foul language for any reason.

Personally, I think the whole thing is awful. I don’t like it when children are used for any cause foisted on children by adults, regardless of how noble the cause might be. It even turns my stomach a little when I see politicians use their own children in their campaign ads. It’s even more tacky to hear children speak about such things they most likely have no clue about. My daughter is pretty intelligent and the same age as some of these girls but I’m fairly sure she doesn’t even think about the ‘equal pay’ or ‘rape culture.’ Why should she? She’s nine years-old for crying out loud!*

So here’s the full uncensored version. If this is too much for your ears to handle, go here for the censored version.

Now, wasn’t that just precious!

More important than the shock value of elementary shool girls cursing like sailors…are the things these girls saying true? For the most part, no, these are the same old progressive feminist myths repackaged yet again. I’ve already dealt with the ‘equal pay for equal work’ nonsense here and here. You can also read this article 5 Feminist Myths that Will Not Die. I’ll let Julie Borowski take care of the rest as only Julie Borowski can – dropping her own F-bombs (Fact bombs, I should say) without actually cursing.

I have a few other F-bombs about gender disparities progressive feminists almost never bring up (and I’ll do so without exploiting any elementary age children to make my points):

A young man is required by law to sign up for Selective Service by his 18th birthday. In the event Congress decides to reinstate the draft, men exclusively are conscripted to risk life or limb for ‘his country.’ Also, of those who have died in all the U.S. wars (declared and undeclared) since the American Revolution, 99.99% were men. When men’s rights activists say that society has long decided that men are the ‘disposable gender’ this is one example of what they are talking about.

When young girls are circumcised we call it ‘genital mutilation’ and we are rightly scandalized by this barbaric practice. When baby boys have their genitals mutilated, we call it circumcision because either the boy should ‘look like his father’ or because some women prefer their partner to be circumcised. So much for ‘my body, my choice.’ And imagine the outrage if even one man said that because he preferred the look of a woman’s vagina without a clitorous, baby girls should have it removed?

When it comes to parenting and divorce, mothers get custody of the children roughly 84% of the time.

Let’s call this the gender ‘crime/time’ gap. For Similar crimes under similar circumstances, on average women serve 18.51 months vs. 51.52 months for men.

Since 1976, 15 women (2.9% of the executions) have been executed even though women are responsible for 10% of murders. While I am unapologetically opposed to the death penalty, as long as this barbaric practice is part of the system, this punishment should be an equal opportunity punishment without regard to sex, race, religion, economic or political status, or creed.

At least 3 states (California, Tennessee, and Kansas) require men to pay child support to his statutory rapist.

I could go on but I think I have made my point. There is inequality between the genders and both have their challenges. Personally, I would like to look at the individual rather than who is on ‘team penis’ or ‘team vagina.’ But first, we need to elevate the debate above the elementary school playground.

*This isn’t to suggest she isn’t already very opinionated or doesn’t care about important issues. That’s right, my daughter already has an issue she cares deeply about. Her issue: the alarming decline of the ‘big cat’ populations. According to National Geographic, there are as few as 3,000 tigers, 7,500 snow leopards, 10,000 cheetahs, and 30,000 lions left in the wild. I had no idea about this until my daughter started writing out a script she wanted to read over the intercom at her elementary school to collect money to help ‘save the big cats.’ I suggested that she should ask for donations to the local big cat sanctuary for her birthday instead of presents. Would you believe she was actually thrilled with this idea and followed through? I couldn’t be more proud of her. If she wanted to make a viral video about saving the big cats, I might make an exception to my ‘no kids’ rule because this is an issue that she actually cares about.

Invalid Presumption of Moral Superiority

A reader commented that the problem with what you might call “strict Randites” is that they “seem to have a lack of compassion”.

An APPARENT lack of compassion.

Some do yes.

Others simply recognize that it isn’t compassion, when one is being “compassionate” with other peoples time, money, and resources.

Not a Randian by any stretch of the imagination… but there IS a point there.

The larger point with Rand, and with Neitzsche, and other individualist philosophers; is that the assumed obligation to sacrifice oneself in favor of others, and the assumed moral superiority of it, are both not only false, but in fact harmful.

Voluntary self sacrifice for good cause, and to good effect (or at least with a realistic attempt at good effect), is a noble thing. In all other cases, it is not.

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

United Nations Scolds Detroit for Human Rights Violations in Cutting Off Service to Those Who Have Not Paid Their Water Bills

If health care is a “right,” what about water?

The city of Detroit, Michigan, is the largest city in the U.S. to declare bankruptcy. As part of its efforts to become fiscally sound, when its customers were $115 million behind in delinquent payments for water and sewer, Detroit began turning off water service to the tens of thousands of residents who were 60 days or more than $150 behind. Activists in Detroit reported that decision to the United Nations, which sent two human rights lawyers, called U.N. special rapporteurs, to investigate.

The U.N. representatives, Leilani Farha and Catarina de Albuquerque, have now determined that Detroit is in violation of international human rights obligations that are binding on the U.S. As Fox News reports, one of the representatives, Catarina de Albuquerque, explained that:

It is contrary to human rights to disconnect water from people who simply do not have the means to pay their bills.

If health care and water are inalienable rights, what about food, clothing and shelter?

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