President Obama has called for an increase in the minimum wage to give poor workers a pay increase. Here’s why it’s well-intended but misguided: 1. Two-thirds of the adults living in poverty don’t work,[1] so raising the minimum wage does little to help most people in poverty. 2. 50% of the minimum wage workers are less than 25 years old.[2] The unemployment rate among those workers is currently about 15%; for African Americans it’s about 25%.[3] Raising the cost ... Read More
The Goal of Tax Policy
People often view debates over economic policy as debates between selfish libertarians, who seek to keep what they earn, and generous communitarians seeking to help the poor. Communitarians recognize that talent is randomly distributed among mankind and that humanity and not individuals are the rightful owners of that talent. Talented individuals have a moral obligation to the community to utilize their talents fully to improve mankind’s standard of living. They have ... Read More
