Walter Williams reveals Truth of Minimum Wage Laws in _Race and Economics_

Walter WilliamsRace and Economics by Walter Williams, 8/31/11: The Compassionate public  policy known as the minimum wage was first introduced to end competition of higher paid white workers with lower paid black construction workers (Bacon-Davis Act), eventually destroying the black family. Economist Walter Williams lays it all out for us in this article. –rhl

Overall U.S. unemployment is 9.1 percent. For white adults, it’s 8 percent, and for white teens, 23 percent. Black adult unemployment stands at 17 percent, and for black teens, it’s 40 percent, more than 50 percent in some cities, for example, Washington.

~ SNIP ~ (I)n 1910, 71 percent of black males older than 9 were employed, compared with 51 percent for whites. As early as 1890, the duration of unemployment among blacks was shorter than it was among whites, whereas today unemployment is both higher and longer-lasting among blacks than among whites.

~ SNIP ~ During the 1930s, there were a number of federal government interventions that changed the black employment picture. The first was the Davis-Bacon Act of 1931, which mandated minimum wages on federally financed or assisted construction projects.

~ SNIP ~ The National Industrial Recovery Act of 1933 and the Fair Labor Standards Act of 1938 broadened the number of workers covered by minimum wages, with negative consequences for black employment across a much wider range of industries. Good intentions motivate most Americans in their support for minimum wage laws, but for compassionate public policy, one should examine the laws’ effect.

~ SNIP (Conclusion) ~ Being unemployed has significant negative social consequences, one of them noted in the 1960s by Sen. Daniel Patrick Moynihan, who raised the alarm about the link between joblessness and the decline of the black family, saying that men without work become less attractive as marriage partners. Between 1890 and 1940, a slightly higher percentage of black adults had married than white adults. Today black marriage rates have fallen precipitously, where 72 percent of black children are born to unwed mothers.

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Posted on September 4, 2011, in MUST READ, Walter Williams and tagged , , . Bookmark the permalink. Leave a comment.

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