Quote Of The Day

“Poor people are not poor because of low wages. For the most part, they’re poor because of low productivity, and wages are connected to productivity. The effect of minimum wages is that of causing unemployment among low-skilled workers. If an employer must pay $5.15 an hour, plus mandated fringes that might bring the employment cost of a worker to $7 an hour, does it pay him to hire a person who is so unfortunate as to have skills that permit him to produce only $4 worth of value per hour? Most employers would view hiring such a person as a losing economic proposition…Minimum wages can have a more insidious effect. In research for my book “South Africa’s War Against Capitalism” (1989), I found that during South Africa’s apartheid era, racist unions, who’d never admit blacks, were the major supporters of higher minimum wages for blacks. Gert Beetge, secretary of South Africa’s avowedly racist Building Worker’s Union, in response to contractors hiring black workers, said, “There is no job reservation left in the building industry, and in the circumstances I support the rate-for-the-job [minimum wages] as the second best way of protecting our white artisans.” Racists recognized the discriminatory effects of mandated minimum wages”. –Walter Williams, professor of economics at George Mason University