The political timing is certainly advantageous for congressional Democrats — just as the new 110th Congress is slated to pass a long-overdue increase in the federal minimum wage, George Will, one of the nation’s most prominent conservative political columnists, comes out against having a minimum wage altogether.
A federal minimum wage is an idea whose time came in 1938, when public confidence in markets was at a nadir and the federal government’s confidence in itself was at an apogee. This, in spite of the fact that with 19 percent unemployment and the economy contracting by 6.2 percent in 1938, the New Deal’s frenetic attempts had failed to end, and perhaps had prolonged, the Depression.
Today, raising the federal minimum wage is a bad idea whose time has come….
[T]he minimum wage should be the same everywhere: $0. Labor is a commodity; governments make messes when they decree commodities’ prices. Washington, which has its hands full delivering the mail and defending the shores, should let the market do well what Washington does poorly. But that is a good idea whose time will never come again.
This will gain traction with … absolutely no one. Bush is afraid to veto an increase, giving Dems the upper hand. Congressional Republicans will be afraid to vote against an idea with 80% support nationwide. Indeed, how many GOP officials are prepared to stand up and say, “Democrats want a $7.25 minimum wage, but I prefer we eliminate the federal guarantee altogether”?
Will also has impeccable timing with regards to headlines. This week, we learned that Home Depot’s beleaguered CEO, who led a company that lost value and market share under his watch, was rewarded with a $210 million severance package. The next day, Americans pick up their newspapers to see George Will say that raising the hourly minimum from $5.15 to $7.25 is foolish and unnecessary.
Yeah, that ought to go over well.
As for the substance of Will’s argument, I think Oliver Willis summarized reality quite well.
George Will speaks the gospel of the GOP elite and libertarians with his argument that the minimum wage should be $0. Trust the market, he says, and wages will be set to a decent level. Of course, that’s what got us here in the first place. Blindly trusting the market to do what’s right without any policing inevitably leads to the market’s participants doing everything within their power to line their pockets and bollocks to everyone else.
The whole reason we’ve got minimum wage law and other labor laws is that left to their own designs businesses colluded with each other, fixed their prices, and paid their workers next to nothing in horrible life-threatening conditions (and some of those laborers were children).
Capitalism is great and it works, but without policing, rules, and enforcement it is the playground of devils – devoid of morality and a pariah on our society. We learned that lesson collectively already, we won’t repeat it. America’s past that.
Well, some of America is past that.