Pike was right
In the Feb. 25 Post-Record, two writers attack State Rep. Liz Pike (R-Camas) for what one calls “well-worn gold plated Republican” positions on minimum wage laws. Liz is right.
Minimum wage laws are an example of good intentions that produce not so good results. Whenever the government mandates a price for a good or service that differs from the market price, it will cause either a shortage (if the price is too low) or a surplus (if the price is too high). This is as certain as water running down hill no matter how much our good intentions wish it was otherwise.
So when the government tells an employer they may not hire someone who has a skill level that is not productive enough for the minimum wage, unless that employer wants to subsidize the worker, the person with a low skill set will not be hired. They will remain unemployed and potentially in poverty. They will not be allowed to compete with higher paid workers. Their minimum wage is zero.
Workers hired at the minimum wage are disproportionately young. One of the writers writes that the minimum wage is inadequate to support a single person. Only about 2 percent of the workforce work force over the age of 25 earns the minimum wage according to a 2004 U.S. Department of Labor study. If younger workers work hard in a short time they will acquire the skills to get a higher wage and move out of their parent’s house and earn more than the minimum wage.
The writers’ engage in ad hominem attacks on Liz Pike, Republicans, and even employers (e.g., “miserable Republican created economy” and “[e]mployers could underpay a worker for a season, then discard them without reason …. and rehire another sub-minimum wage worker to continue underpaying their employees…”).