News

Fast-food walk out ignores basic economics: minimum wage hike creates unemployment

3 Comments

Investors Business Daily explains what’s wrong with the plan of fast-food industry workers to strike for higher wages.

Excerpt:

Egged on by unions, fast-food workers plan to strike in dozens of U.S. cities for much higher wages. Sadly, they’re being used to do something that’s not in their own interests.

Sensing the time is ripe, the Service Employees International Union and union-funded front groups are organizing a walkout of workers at fast-food joints in about 100 cities to protest how tough it is to live on the federal minimum wage of $7.25 an hour.

They’d like that nearly doubled to $15 — and not just for fast food, but retailing and other industries too.

Sounds great. But even by the loopy logic of the left, this is economic insanity and would lead to greater misery, fewer jobs and fewer opportunities for all.

That’s not just our opinion. Economists David Neumark and William Wascher, in their comprehensive book “Minimum Wages,” looked at virtually all the scholarly and statistical evidence worldwide, digging up literally dozens of studies.

Their finding: Minimum wage laws almost always result in a “reduction in employment opportunities for low-skilled” employees while limiting “skill acquisition by reducing educational attainment and perhaps training, resulting in lower adult wages and earnings.”

And, they said, it reduces the total amount of human capital — a huge cost to society.

The minimum wage is so devastating that roughly 85% of all economists in a recent survey — from both the left and the right sides of the spectrum — said they think it’s a bad idea.

[…]The idea that working families depend on these jobs is false. Most of those working for minimum wage are young, ages 16 to 24. They live in middle-class homes with above-average household incomes.

And as James Sherk of the Heritage Foundation notes, two-thirds of minimum-wage earners get a raise in their first year. This is how they learn to show up, work hard and get along with others — valuable life skills young people acquire as they begin work and the very things that will make them a success later on.

A higher minimum wage would cost young workers jobs and opportunities. They’d be wise to ignore the unions’ siren song of higher wages for nothing.

From Investors Business Daily, an article by famous economist Thomas Sowell has more on this issue.

Excerpt:

Switzerland is one of the few modern nations without a minimum-wage law. In 2003, the Economist magazine reported: “Switzerland’s unemployment neared a five-year high of 3.9% in February.”

In February of this year, Switzerland’s unemployment rate was 3.1%. A recent issue of the Economist showed Switzerland’s unemployment rate as 2.1%.

Most Americans today have never seen unemployment rates that low. However, there was a time when there was no federal minimum-wage law in the United States.

The last time was during the Coolidge administration, when the annual unemployment rate went as low as 1.8%. When Hong Kong was a British colony, it had no minimum-wage law. In 1991 its unemployment rate was under 2%.

[…]Most people in the lower income brackets are not an enduring class. Most working people in the bottom 20% in income at a given time do not stay there over time. More of them end up in the top 20% than remain behind in the bottom 20%.

There is nothing mysterious about the fact that most people start off in entry-level jobs that pay much less than they will earn after they get some work experience.

But when minimum-wage levels are set without regard to their initial productivity, young people are disproportionately unemployed — priced out of jobs.

In European welfare states where minimum wages, and mandated job benefits to be paid for by employers, are more generous than in the United States, unemployment rates for younger workers are often 20% or higher, even when there is no recession.

Unemployed young people lose not only the pay they could have earned but, at least equally important, the work experience that would enable them to earn higher rates of pay later on.

Minorities, like young people, can also be priced out of jobs. In the United States, the last year in which the black unemployment rate was lower than the white unemployment rate — 1930 — was also the last year when there was no federal minimum-wage law.

Inflation in the 1940s raised the pay of even unskilled workers above the minimum wage set in 1938. Economically, it was the same as if there were no minimum-wage law by the late 1940s.

In 1948 the unemployment rate of black 16-year-old and 17-year-old males was 9.4%. This was a fraction of what it would become in even the most prosperous years from 1958 on, as the minimum wage was raised repeatedly to keep up with inflation.

A survey of American economists found that 90% of them regarded minimum-wage laws as increasing the rate of unemployment among low-skilled workers.

Harvard University economist Greg Mankiw puts the level of opposition to minimum wage hikes at 79% among professional economists across the ideological spectrum.

Learn economics for Christmas

By the way, if you’re looking for a really good drama that shows the business-owner vs union-leader conflict, I really recommend the BBC production of North and South. It’s a beautiful period drama that’s based on a Christian woman’s novel. The author of the book wrote in the time of Charles Dickens, and he even named the book for her. It’s rated 8.7/10 on IMDB. It’s $19.99 on Amazon, although it sometimes goes lower than that! A great way to communicate basic economics to your liberal spouse or significant other – especially on this minimum wage issue. Oh, apparently there is a love story in it, but I didn’t really pay any attention to that part of it, other than to be pleased that there was no sex or nudity at all – not even kissing! Perfect! This DVD is WK-approved. It is also Dina-approved, because she was the one who suggested it to me.

Just to give you an idea of how much I liked it, I tried watching Downton Abbey and stopped after two episodes. It’s boring nonsense. But North and South I rated 9.5/10 and could not stop watching it once I started. There are no wasted scenes, no fluff at all. Everything they did worked to develop the theme of the story. How different it is from the garbage they have in theaters today! The presentation of capitalism is absolutely heroic, and yet the union side is presented sympathetically as well. Of course, if you want to read an economics book instead, then just get Thomas Sowell’s “Basic Economics“. One of my friends (Letitia) is actually reading that now.

Polemics

Did the divinity of Jesus emerge slowly after many years of embellishments?

7 Comments

How early is the doctrine of the divinity of Jesus?

When I answer this question, I only want to use the earliest, most reliable sources – so I can defend them on historical grounds using the standard rules of historiography.

The 4 sources that I would use are as follows:

  • The early creed in 1 Corinthians 15:3-8, and 1 Corinthians 1
  • A passage in Philippians 2
  • Two passages from Mark, the earliest gospel
  • A passage from Q, which is an early source of Matthew and Luke

So let’s see the passages.

1 Corinthians

I’ve written before about the early creed in 1 Corinthians 15:3-8, which skeptical scholars date to 1-3 years after the death of Jesus, for a variety of reasons I covered in the previous post. Here’s the creed which definitely makes Jesus out to be more than an ordinary man. Ordinary men don’t get resurrection bodies after they die.

Here’s the passage: (1 Cor 15:3-8)

3For what I received I passed on to you as of first importance: that Christ died for our sins according to the Scriptures,

4that he was buried, that he was raised on the third day according to the Scriptures,

5and that he appeared to Peter, and then to the Twelve.

6After that, he appeared to more than five hundred of the brothers at the same time, most of whom are still living, though some have fallen asleep.

7Then he appeared to James, then to all the apostles,

8and last of all he appeared to me also, as to one abnormally born.

Additionally, 1 Corinthians 1:21-25 talks about Jesus being “the power of God and the wisdom of God”. Paul is identifying Jesus with the divine.

21For since in the wisdom of God the world through its wisdom did not know him, God was pleased through the foolishness of what was preached to save those who believe.

22Jews demand miraculous signs and Greeks look for wisdom,

23but we preach Christ crucified: a stumbling block to Jews and foolishness to Gentiles,

24but to those whom God has called, both Jews and Greeks, Christ the power of God and the wisdom of God.

25For the foolishness of God is wiser than man’s wisdom, and the weakness of God is stronger than man’s strength.

But it gets even stronger! You all probably already know that the most important passages in the Old Testament for Jews is the famous “Shema“, which is found in Deuteronomy 6:4-9. The Shema is a strong statement of Jewish monotheism.

Here’s the passage:

4 Hear, O Israel: The LORD our God, the LORD is one.

5 Love the LORD your God with all your heart and with all your soul and with all your strength.

6 These commandments that I give you today are to be upon your hearts.

7 Impress them on your children. Talk about them when you sit at home and when you walk along the road, when you lie down and when you get up.

8 Tie them as symbols on your hands and bind them on your foreheads.

9 Write them on the doorframes of your houses and on your gates.

So how does Paul fit Jesus in with this strong statement of Jewish monotheism?

Paul alludes to the Shema in 1 Corinthians 8:4-6.

4So then, about eating food sacrificed to idols: We know that an idol is nothing at all in the world and that there is no God but one.

5For even if there are so-called gods, whether in heaven or on earth (as indeed there are many “gods” and many “lords”),

6yet for us there is but one God, the Father, from whom all things came and for whom we live; and there is but one Lord, Jesus Christ, through whom all things came and through whom we live.

Holy mackerel! How did that get in there? Paul is splitting the roles of God in the the Shema and identifying Jesus in one of the divine roles! Jesus is not an ordinary man. That passage “through whom all things came” foreshadows John identifying Jesus as “the Word of God”, which “became flesh and dwelt among us”. Holy snark – did you guys know that was all in here so early?

The date for 1 Corinthians is 55 AD. It should be noted that skeptical scholars like James Crossley accept these passages, and you can check it out in the debate audio yourself.

Philippians

Check out Philippians 2:5-11.

5Your attitude should be the same as that of Christ Jesus:

6Who, being in very nature God, did not consider equality with God something to be grasped,

7but made himself nothing, taking the very nature of a servant, being made in human likeness.

8And being found in appearance as a man, he humbled himself and became obedient to death— even death on a cross!

9Therefore God exalted him to the highest place and gave him the name that is above every name,

10that at the name of Jesus every knee should bow, in heaven and on earth and under the earth,

11and every tongue confess that Jesus Christ is Lord, to the glory of God the Father.

The date for Philippians is 60-61 AD. Still within the lifetime of the eyewitnesses, and written by an eyewitness who was in contact with the other eyewitnesses, like Peter and James, whom Paul spoke with numerous times on his journeys to Jerusalem.

Mark’s gospel

Mark’s gospel is the earliest and atheists like James Crossley date it to less than 40 AD, which is 10 years after the death of Jesus at most. When you read the gospel of Mark, you are getting the earliest and best information available about the historical Jesus, along with Paul’s epistles. So what does Mark say about Jesus? Is Jesus just a man, or is he something more?

Check out Mark 12:1-9:

1He then began to speak to them in parables: “A man planted a vineyard. He put a wall around it, dug a pit for the winepress and built a watchtower. Then he rented the vineyard to some farmers and went away on a journey.

2At harvest time he sent a servant to the tenants to collect from them some of the fruit of the vineyard.

3But they seized him, beat him and sent him away empty-handed.

4Then he sent another servant to them; they struck this man on the head and treated him shamefully.

5He sent still another, and that one they killed. He sent many others; some of them they beat, others they killed.

6“He had one left to send, a son, whom he loved. He sent him last of all, saying, ‘They will respect my son.’

7“But the tenants said to one another, ‘This is the heir. Come, let’s kill him, and the inheritance will be ours.’

8So they took him and killed him, and threw him out of the vineyard.

9“What then will the owner of the vineyard do? He will come and kill those tenants and give the vineyard to others.

And Mark 13:32, talking about the date of the final judgment.

32“No one knows about that day or hour, not even the angels in heaven, nor the Son, but only the Father.

And again, this passage is establishing a hierarchy such that Jesus is being exalted above all men and the angels, too. And the passage is embarrassing to the early church, because it makes Jesus look ignorant of something, so they would not have made this passage up. Jesus is not an ordinary man, he is above the angels – God’s unique Son.

The “Q” source for Matthew and Luke

Here’s Matthew 11:27, which is echoed in Luke 10:22:

27“All things have been committed to me by my Father. No one knows the Son except the Father, and no one knows the Father except the Son and those to whom the Son chooses to reveal him.

22“All things have been committed to me by my Father. No one knows who the Son is except the Father, and no one knows who the Father is except the Son and those to whom the Son chooses to reveal him.”

Since this passage is in both of Matthew and Luke, but not in Mark, scholars believe that it is in the earlier “Q” source used by both Matthew and Luke. Q predates both Matthew and Luke, and so it is also fairly early (maybe 67-68), although not as early as Mark and Paul. Bill Craig writes that this passage is also embarrassing because it says that no one knows Jesus.

Learn more

You can learn more about the early belief in the divinity of Jesus by listening to a lecture by William Lane Craig and reading the related paper, and by listening to the debate between Richard Bauckham and James Crossley on that topic. The first link contains other scholarly debates on Jesus.

Polemics

New study: unmarried parents four times more likely to split up than married couples

1 Comment

Dina sent me this article from the UK Daily Mail.

Excerpt:

Unmarried parents are four times more likely to split up than those who have wed, research revealed yesterday.

It also indicated that co-habiting couples with children under 16 are now responsible for the majority of  family breakdowns.

On average, 5.3 per cent of these relationships ended each year from 2009-12, according to the study.

But among those who had taken their vows, the average rate was only 1.3 per cent, said the Marriage Foundation think-tank and university academics.

The high rate of co-habiting parents in family splits comes despite these couples making up only a fifth of those with children.

The figures were gathered from the findings of a £50 million state-sponsored research project, the Understanding Society survey.

Over the last 20 years, it has gathered information on the progress of families and now tracks events in 40,000 homes.

I have a friend who moved in with a non-Christian guy before she became a Christian and they broke up. She told me all about it. When I was listening to her, the thought occurred to me that women and men think that co-habitation is leading to different places. And it turns out that there is some evidence to support this intuition.

Consider  this fascinating article from the Atlantic, authored by marriage researcher W. Bradford Wilcox. The article discusses the variances between cohabitating men and women regarding goals and expectations.

Excerpt:

According to a new paper from RAND by sociologists Michael Pollard and Kathleen Mullan Harris, cohabiting young adults have significantly lower levels of commitment than their married peers. This aversion to commitment is particularly prevalent among young men who live with their partners.

Pollard and Harris found that the majority of cohabiting young men do not endorse the maximum indicator of relationship permanence: 52 percent of cohabiting men between ages 18 and 26 are not “almost certain” that their relationship is permanent. Moreover, a large minority (41 percent) of men report that they are not “completely committed” to their live-in girlfriends. By contrast, only 39 percent of cohabiting women in the same age group are not “almost certain” their relationship will go the distance, and only 26 percent say they are not “completely committed”. Not surprisingly, the figures above and below also indicate that married women and men are much less likely to exhibit the low levels of commitment characteristic of many cohabiting relationships today.

Women are thinking that it is going to lead to some deeper commitment from the man, but men are thinking that they are getting what they want already (sex) and that they want to avoid the higher risks of making a more formal commitment.