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the president is state of the union to actually was
dallas t_v_ this to the address
called for an increase in the national minimum wage which would be about ten
dollars and twenty five to ten dollars and fifty cents an hour for was where
was in nineteen sixty-eight ingested for inflation over the years
unanswered is at seven twenty five e he said uh... raise it as i recall the
eight
fifty nine dot nine dollars a legal it's a pretty substantial raise but still
below were was nineteen sixty eight it seems like we were doing just fine in
nineteen sixty
numerous tier of states have raise the minimum wage alley without negative
consequences but with explicitly overtly positive consequences
wild in portland oregon they raise the minimum wage on
uh... on wait staff from
two dollars an hour to the state minimum wage which is over eight dollars an hour
and everybody was saying i want to be disastrous guys gonna fall actually mail
things went just fine
he returned
doesn't verse ir is with us maseri rick
writer prizes my biology ciliary brycen professor harry of riser professor of
economics university betrayed mercy
the uh... author of the didn't have to be this way why boom and bust is a
necessary in how the austrian school of economics breaks the cycle
eugene mercy dot you use the web site
uh...
i don't
get it why
why
how can you argue
as the austrian school typically does and that the free market is gonna solve
all our problems
when there's no such thing as a free market
well i don't think they don't want we all realize that there's a certain
limitation in human affairs
uh... bar the free market is a is really a practical decision and remember
version relations thing as a free market or printer price system
it's what happens when certain things are done it's a byproduct
right it is like assisting is a free football game that you have referees
your rules you've goal posts everybody agrees on the rolls and so lumber why it
was a so that that being the case
what's wrong with everybody agreeing that if we as a society
are going to give business people
privileges and immunities communities from financial liability at the ability
to deduct luncheon travel
the ability to
rule to make a profit and even if you make a profit a particular way pay lower
income tax on it than than average working people did
if really give them all these
in exchange for this at the very least for going to say
pay a decent wage
sure what's wrong with only winnipeg rhetorically as sounds very good in
remembers me congressman job
is not to say what you should do
it's what the say what the consequences are with and under what conditions you
make the decision so you make a decision
that's appeal which allowed bill but you should know everything does involve a
cost
and uh... the question is is that we where the sale cabey's of the cost
involved
yeah my question is what it what it costs a society of having a lot of
people living in poverty because employers are paying such low wages
well now
that's a very good question because in fact the remember in economic share
something called personal regressivity
and what everyone says is that people at the lower income low water affected much
more
by economic
and regulations and taxes the people at the upper level
uh... for example what said bill gates um... but i guess we want the ten
dollars a gallon just just hypothetically
well it's not perfect at the wealthy like bill gates as much as for the fact
the person who's
you know who is working for minimum wage dot on the other hand if the if the
capital gains tax went from twenty percent to thirty nine percent if we do
a ronald reagan did in nineteen eighty six made in the same
and worrying called for
uh... that would affect bill gates in a big way and the average working person
would notice at all so you know it's it's a matter picking and choosing what
regulations because i waited in let me finish okay and profit
but a gasoline fell to fifty cents a gallon
who's going to benefit more
well obvious to the poor person's would benefit more
so a regressivity censuses says you do these things in the economy and they
show themselves than price levels
or shows children cost this is going to have the effect ne passes in a different
but what this really has a sailor was just finish this first one i would argue
that gasoline fela fifty cents
the people who would benefit the most would be the very wealthy people who are
engaged in business
because now the real job creators in our society the people who spend a hundred
percent other income
are going to have more income to spend
and that's gonna create more demand in the in the economy it's going to
stimulate the economy there's more demand for goods and services
and so the people who are making the most off the sale distribution of
manufactured goods and services
are gonna make even more
when you're here situation all orders are gonna get richer ok and pour her a
card you're here situation now
castle if a gasping report fifty cents a gallon are open
the poor people probably gasoline is much greater percent
of their income and is on the wealthy but they have a limited need for it
no reallly ogle women neighbor settlement
some people made as much more much greater part of their income of
ownership
right and that's where who prints were regressivity comes at but there is a
limit to the to the principle of regressivity uh... in in there is a
somebody's driving ten miles to work every day the still driving ten miles to
work every day now they got a little extra their pocket
but yet but let let's bring this back to the minimum wage for this is the sort
that we're talking professor harry uh... riser
and dimension or god
a with their failures by i was on our ground and um... i've talked to a fellow
injection or going to include um... business called the jacksonville him
and we talked about the minimum wage and i said look he said i used to hire quite
a few teenagers they would come in here in the summer and they would go on to
get degree cm arco merits or hospitality management
and he was quite proud back to me that number graduates who come here they've
done very well whatever else this was we're beginning job
he's a milwaukee should my business is very tight
because when they raise the minimum wage i'm no longer able to do that
so what's happening is a while business is just like the jacksonville and learn
by she called me to go out to tell you a star you know i'm surprised they had a
problem because it is not a statewide issue this was just the city of portland
and which is not jacksonville so he
being all you know he was in front of the problem
and and and it seems to me that was
well he told me that people are cases
well they made me what happened was that the competing businesses you know other
com other companies have decided to adopt portland's minimum wage for
waiters
and waitresses in and so we know it was spreading just like the way you know
whenever there's uh... if they if you've got twelve percent of the
of the population is union jobs another twelve percent will have the queen just
as a tennis at the local floor for wages
but but that that that whole phenomenon of ci at a minimum wage jobs used to be
entry-level jobs for teenagers
uh... i'm with the on that i mean you know i'd i've tried to amber's rose
thirteen years old i had to get a work permit to do it because i was under
sixteen
and there are many visitors seventeen in michigan every state editor rules
and here which is distilled version harry's hamburgers
and and that was an entry-level job back then everybody who worked in henry cm
birds when i've when i was working there was under twenty years old now you walk
in there you'll find people mid-thirties therefore leona's is out of business but
you walking the dogs you find you know people who would normally be in a in a
in a mainstream economy and and i i would say that that's that's not caused
by the by the uh...
by the minimum wage that that's cause by this enormous shift in wealth out of the
middle class and into the top one percent
young up and if you take a look at the statistics
when the best start happening with reagan no normal
nineteen seventy one
when nixon broke the gold standard
and ever since and we've got inflation which are looking at as a result of
inflation inflation praying for you to try to tell me we did not have inflation
before seventy one
i gave you take a look at the statistics
under the bretton woods agreement from nineteen forty six nineteen seventy-one
in colombia last dot com none other than the price of gold was faxed and so uh...
and and and everything you had forty one crimes is around the world the work
pegged to the u_s_ dollar understand that and i got blown up in nineteen
forty one nineteen seventy one
but but between bretton woods in seventy one there was inflation tumble
the press's bubble
to the next twenty five years we seventy-one the ninety-six prices were
up four times
well in large part because the cost of oil when it so much because our society
was dependent on oil
as you know that there's a there's a strong body of the economic evidence
that that
barges that inflation
uh... outside of the inflation caused by you know the fed the you know that
graduated inflation is actually consequence of poor commodities go
terrible what promotes work mothers opposite drop in the rose a dollar for
dollar sports but the price of oil and offers fourteen-year-olds who went up in
in lira in gilbert's garlic parsley dollars
worldwide are also interested in our stuff but they all had of right
period for sale for prices and surprised
personality received reports of things that happened