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Posts Tagged 'Minimum Wage'

I devise a failsafe recipe for full employment – lower the Minimum Wage! (with thanks to John Key)

I see that left-wing liberal bleeding-heart, Tapu Misa, doesn’t believe the PM when he says that raising the minimum wage from $12.50 an hour to $15 an hour will put thousands more Kiwis  out of work. 

After quoting a whole lot of economists  (whom none of us have heard of) to support her argument, Ms Misa conveniently ends her column in this morning’s Herald  by admitting that, ‘There isn’t the space here for an exhaustive discussion of the research’. Very convenient!

This doesn’t stop her claiming that, ‘recent evidence is forcing a rethink about what was once accepted economic wisdom.’

Well, I’ve been having a bit of a rethink about this myself and it’s blindingly obvious to me, as it must be to any other reasonable person, that what the PM is saying just has to be right.

It’s just common sense that if an employer has a choice of employing someone on $12.50 an hour and someone else to do the same job for $15 an hour, he’s going to employ the first bloke. And if he can’t afford $12.50 an hour, he’s not going to employ either of them. That’s simple economics. We could call it ‘John’s Law’: The higher the hourly rate, the higher the number of unemployed.

The corollary of John’s Law – let’s call it ‘Bill’s Law’ – must then logically be: The lower the hourly rate, the lower the number of unemployed.   Read the rest of this entry »

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