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Minimum Value of Minimum Wage

Recorded on February 10, 2012

From The Heritage Foundation, I’m Ernest Istook.

While millions of Americans remain unemployed, we're hearing about another bad idea that hurts people looking for work.

It is misplaced compassion to promise to raise the minimum wage, or to increase it automatically whenever the cost of living goes up.

The problem is that when the minimum wage goes up, employment goes down. And it hurts those who need jobs the most. When their job skills are worth less than the minimum wage, they cannot find work and end up burdening our welfare programs. All too often these are minorities or youth who suffer the most.

Most often, these are starter jobs—the first rung on the ladder.

Minimum wage jobs usually are a phase, a way to train on-the-job, improving skills you need to earn more. The right way to get a raise is to earn it by being more productive. And to get it by asking your boss, not the politicians.

From The Heritage Foundation, I’m Ernest Istook.