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Minimum wage woes. (Correction, Please!).(Illinois Governor Rod Blagojevich considers minimum wage increase)

The New American

| May 05, 2003 | Hoar, William P. | COPYRIGHT 2003 American Opinion Publishing, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

ITEM: "Organized labor and a passel of politicians turned on the pressure ... to push for an increase in Illinois' minimum hourly wage from $5.15 to $6.50," reported the Chicago Sun-Times for March 31st. "'Someone who works 40 hours a week, 52 weeks a year, and earns $10, 712 deserves more money, deserves a raise,' said [Illinois Democratic Governor Rod] Blagojevich."

CORRECTION: The same story tried to put a human face on the minimum wage issue by reporting:

Domingo Vargas, 48, said he's struggling to raise five children ... on $5.15 an hour as a day laborer. "I want them to go to school, to have an education, to go to college," Vargas, a native of Puebla, Mexico, said through a translator. "I feel despair."

Governor Rod Blagojevich and other advocates of a higher minimum wage would have us believe a wave of a public-policy magic wand will generate manna for this laborer trotted out as a prop. We wonder if the governor will be inviting Mr. Vargas to a press conference when a mandatory hike causes many of the poorest workers -perhaps including this non-English-speaking immigrant - to lose their jobs.

Studies show that for every 10 percent increase in the minimum wage, a minimum of 100,000 jobs is lost, when employers find it unprofitable to hire marginal unskilled labor. After all, if the law of supply and demand really can be repealed, why stop with a $1.35 raise? If legislation can ensure prosperity, why not make the minimum $20 an hour? Or $200?

Mr. Vargas ...

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