Should There Be a Minimum Wage?

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Dennis Hackethal’s avatar
Dennis HackethalOP·​#6149·​

Effective or not, at least the advocates of the minimum wage have good intentions.

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Dennis Hackethal’s avatar
Dennis HackethalOP·​#6151·​·​Criticism

No, minimum-wage laws have originally racist motivations in several jurisdictions:

  • British Columbia, a minimum-wage law passed in 1925 to price Japanese immigrants out of jobs in lumber.
  • Australia, to “‘protect the white Australian’s standard of living from the invidious competition of the colored races, particularly of the Chinese,’ who were willing to work for less.”
  • South Africa during apartheid, when “white labor unions urged that a minimum-wage law be applied to all races, to keep black workers from taking jobs away from white unionized workers by working for less than the union pay scale.”
  • The United States, with the Davis-Bacon Act of 1931, whose supporters “used exactly the same rationale, citing the fact that Southern construction companies, using non-union black workers, were able to come north and under-bid construction companies using unionized white labor.”

Historically, advocates of the minimum wage understood its effects and used them strategically.

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