the state of California through a democratic small D democratic process
the elected representatives have the people love the state of California
representing a
over seventy percents majority of californians according to polls
who want the minimum wage raised
the state of california is going to be raising their minimum wage
it's going to take three years to do it but it's going to go up to 10 bucks an
hour which is still below where was in 1968
but they're doing it
this will add
billions of dollars to the state's economy particularly money coming into
the state because many of these
large companies that pay very very little Walmart for example page 28
percent below the average for big-box retailers
every night they push a button and every Walmart store in california all that
money goes cap
like that in a vacuum cleaner to a giant bank down Ben feller
arkansas so ceremony leaving California going arkansas every night
a little bit more about will stay in California circulating the state's
economy so it's a huge stimulus to the state
not to mention that the workers will spend that money gonna be a good thing
for californians
right now thirty million workers nationwide are making less than workers
made in 1968 adjusted for inflation is
this is incredible every dollar increase up the minimum wage results in twenty
eight hundred dollars
in new consumer spending from that households
their workers household over the years the best way to stimulate an economy
bar none Adrian Moore doctor Adrian more however
vice president for policy at the Reason Foundation an economist
begs to differ or defer reason not our course website
doctor more welcome welcome Tom thank you
so a couple questions first evolved
this minimum wage increase in california is supported by a majority of
californians
it was passed by the elected representatives have californians
what don't you like about democracy test
I haven't said anything against democracy Tom
I do you believe that everything the government does like a
who bring up all over private data I mean it's our democratically elected
government that the
by violating our privacy what do you have against democracy if the master
if the vast majority of Americans are in favor of it if their elected
representatives voted for it neither which i think is the case in with
much what the NSA is doing on then I would be in favor of the yes
I realize there are shortcomings that democracy the majority of Americans
a were in favor of slave really southern to Americans for some time
but it this ya I i still dont think that
that the that's a that's a strong argument if a majority of americans
think this is good policy
if if some economists yourself excluded
can build an argument that it might be good to policy and if the elected
representatives do it that is a classic example the democratic process or the
Republican process actually I action
and I and review it does need is
it is the process because I mean and
I don't think that whether something was done democratically determines whether
it's right or wrong
it may determine whether it was done in the right fashion are no I'm
it and if it's gonna work its gonna fail it's going to be a disaster
than the people can undo it that's true
the people can and do it but the fact the matter is that we've had ever since
1935 when them
whether minimum wage went into effect we've had you know all these better wage
increases I forget the numbers I 38 minimum wage increases and set time
and not once has there been a disaster in fact every single time the economy
has grown
and not once have the people said gee that was a mistake we need to throw the
bums out like people who are going to roll back tomorrow
way that's because the cost are the costs are hidden
INS partly why we do and why even do economic analysis unless we're going to
concede that it
review of things that you can't just seeing with casual observation
the other cost maybe had 19 most to the cost a minimum wage increase are in the
form of reduced income for billionaires in reduced dividends
and but the benefits are obvious more spending in the community can argue that
every time I that they are always able to pass
I cost on to the consumers
they rarely do that some rule some who we want to impose on them but they're
not recognized that also happens
when we raise the wages the caught raising brazen groove
in comics but it also raises the price is good and the fact is that
eilers let's not true today is worth much western
unskilled labor was a hundred years ago you can't
the economy is not unskilled economy more used to be
unskilled wage labor a late and feel labor's wages were
relatively higher because unskilled work with a bigger part the economy that
that's a whole completely different argument
and and and the fact that an ear your assertion that when wages are raised
that that automatically means that the price a goods goes up
for small in most industries wages represent a very very small part of the
wage
up the cost of goods but secondly the price of goods are typically fix by Mark
a place forces not by wages
and so it when wages are raised what happens typically is that dividends go
down CEO pay goes down
companies find other ways to become more efficient in fact efficiency increases
in fact you can make a very very strong argument I think history throughout the
sixties to the nineties makes that argument very very eloquently
and when you look at efficiencies within companies that follow the years after
minimum wage raises
increases that minimum wage increases drive efficiencies in companies
therefore they're healthy
and powerful positive a force in the marketplace
I i think you're asserting a cause and effect it has never been demonstrated
these things all happened
during the same time histories but there was a lot going on a
what I don't understand is why I shouldn't
wages be set competitively why shouldn't wages
be if someone is willing to work at this job
for fifty cents an hour left in me why shouldn't they get the job why shouldn't
the job this Peter
the way to be determined by the level at which people are willing to do the work
because shit
to you ask your dad is a genuine question I have a genuine answer at
because capitalism sometimes fails you have business cycles for capitalism
fails and you have high levels of unemployment during those times if I
levels of unemployment
the force Anna libertarians don't like fourths the force
%uh nature hunger need for shelter those forces drive people to work in
situations
that they otherwise wouldn't work in and so if you wanna be empty if
then if government was going to be the employer of last resort I would've for I
would I would agree with you
if we were going to maintain you know less than four percent unemployment no
matter what
by by doing a WPA or CCC in the government is the employer of last
resort
I would absolutely with you we're not doing that so what we have is a very
very loose labor
market and and I'm of the opinion from personally
that if we're going to define the rules the game a capitalism the first rule
should be
if you wanna play capitalism hardcore factually free enterprise this has
nothing to do with capitalism
if you wanna play if you wanna play business and you can't at least pay our
workers enough to live on
you have no right doing business in the United States of America but why should
every job pay enough to live on the whole idea
%uh I I debaters diverse economy
is that there are many many many jobs on which you can make a living
and there are many jobs on which are not intended
here at the bottom of this scale they're not jobs every job should be a
should make enough to live on because every human being is worth living
when you're I'm field you should not expect to be able to make a living
offer more ordinary days labor why not have to
you have no respect for unskilled labor no you think you just get somebody is
born with an IQ of eighty five or ninety dollars down your question
let me answer your questions you have to team up with somebody
have a roommate have roommate have a wife
or whatever other workers in your I'm talking about things a whole lot worse
than last year will combine your well income
so that you can have enough income to for their helpful if you're unskilled
or you can get some skill and no longer be an skilled
there's many ways to not have to make a living off and the labor unfair labor
it for people be in temporarily when they're young
Katie when they're all people when they're online not the average age of
McDonalds workers 28
not a way to make a living Tom your I I will agree with you on that on all
Adrian more about to leave you the last word Adrian Moore vice president for
policy a reason
a foundation actor Adrian Moore you can read all about it over reason .org thank
you sir Phoenix
up