Tag Archives: Hispanic

New study: raising minimum wage hurts young, minority workers most

This report is from the libertarian Cato Institute.

Except:

A new working paper from the National Bureau of Economic Research finds that significant minimum wage increases can hurt the very people they are intended to help. Authors Jeffrey Clemens and Michael Wither find that significant minimum wage increases can negatively affect employment, average income, and the economic mobility of low-skilled workers. The authors find that significant “minimum wage increases reduced the employment, average income, and income growth of low-skilled workers over short and medium-run time horizons.”  Most troublingly, these low-skilled workers saw “significant declines in economic mobility,” as these workers were 5 percentage points less likely to reach lower middle-class earnings in the medium-term. The authors provide a possible explanation: the minimum wage increases reduced these workers’ “short-run access to opportunities for accumulating experience and developing skills.” Many of the people affected by minimum wage increases are on one of the first rungs of the economic ladder, low on marketable skills and experience. Working in these entry level jobs will eventually allow them to move up the economic ladder. By making it harder for these low-skilled workers to get on the first rung of the ladder, minimum wage increases could actually lower their chances of reaching the middle class.

Most of the debate over a minimum wage increase centers on the effects of an increase on aggregate employment, or the total number of jobs and hours worked that would be lost. A consensus remains elusive, but the Congressional Budget Office recently weighed in, estimating that a three year phase in of a $10.10 federal minimum wage option would reduce total employment by about 500,000 workers by the time it was fully implemented. Taken with the findings of the Clemens and Wither study, not only can minimum wage increases have negative effects for the economy as a whole, they can also harm the economic prospects of  low-skilled workers at the individual level.

With that in mind, I have some bad news for everyone who likes the idea of young people of color finding work.

The Daily Signal explains: (H/T Dad)

At the stroke of midnight today, 19 states increased their minimum wage. Residents of three more and the nation’s capital can expect hikes later on this year.

[…]Federal legislation was met with resistance. though. Republicans argued raising the minimum wage would cause an increase in prices for consumers and low-wage workers likely would face layoffs as companies grappled with the higher costs associated with hiked wages.

Some of those concerns were validated last month by a University of California, San Diego, study. For three years, researchers followed low-income workers residing in states that saw wage hikes and those that did not. The study found that minimum wage hikes had negative impacts on employment, income and income growth.

[…]“Minimum wage supporters have good intentions, but those good intentions cannot repeal the law of unintended consequences,” James Sherk, an expert in labor economics at The Heritage Foundation, told The Daily Signal. He added:

Minimum-wage increases reduce the total earnings of low-wage workers — the higher pay for some workers gets completely offset by the nonexistent pay of those no longer employed.

In its study, UCSD researchers found that after minimum-wage increases, the national employment-to-population ratio decreased by 0.7 percent points between December 2006 and December 2012.

In addition, the study found that minimum-wage increases hindered low-skilled workers’ ability to rise to lower-middle -lass earnings.

So we need to be really careful about setting economic policy based on emotions. Things that sound nice, which we feel will help the poor, actually hurt the poor. We have to have evidence-driven public policy, not feelings-driven public policy. People’s lives are depending on it.

Why is the Latino poverty rate going up?

From the Heritage Foundation.

Excerpt:

It has been reported recently that the poverty rate among Latinos has reached 28 percent.

The number, based on a new poverty measure by the Obama Administration, should be interpreted with caution, as explained here and here. However, the overall point that more American Latino families, and Americans in general, are struggling to achieve self-sufficiency is troubling.

What’s not mentioned in news reports, however, is the greatest driver of child poverty in the U.S. today: unwed childbearing. Among Latinos, unmarried parent families are roughly three times as likely to be poor as married families. Tragically, over half of Latino children born today are born outside of marriage. The rate has increased from less than 40 percent in the 1990s to more than half—nearly 53 percent—today.

These facts are rarely mentioned, and few attempts made to address the matter. Instead, big government proponents clamor that the antidote to poverty is greater government welfare spending. Unfortunately, these programs do not help people overcome poverty. Today, the U.S. spends roughly five times the amount necessary to pull every poor person out of poverty, and welfare is the fastest-growing part of government spending, exceeding even the cost of defense spending. However, poverty rates have not declined.

While welfare can provide temporary relief to those who have no other options, the vast majority of welfare programs are based on promoting government dependence rather than self-reliance. To pave the way to upward mobility, anti-poverty efforts should address the causes of poverty, such as family breakdown, not simply transfer material goods. Institutions of civil society—faith-based and community-based—are better suited to address the complexities of poverty, having a greater ability to reach individuals on a personal level.

Avoiding poverty in America is easy: you just have to finish high school, stay out of jail, get married before you have kids, stay married, and work at any job.

You just have to make the right choices, and that would be even easier if the government stopped rewarding people with taxpayer money for making the wrong choices – and then blaming others for their own poor decisions. People choose poverty, and they ought to be held responsible for it. If we really wanted to “help the poor”, then we would be increasing tax breaks for charity, for marrying and for working at any job – no matter how much it pays.

Haitian man who could not be deported kills three people in Florida

From the Miami Herald.

Excerpt:

When burglar Kesler Dufrene became a twice-convicted felon in 2006, a Bradenton judge shipped him to prison for five years. And because of his convictions, an immigration judge ordered Dufrene deported to his native Haiti.

That never happened.

Instead, when Dufrene’s state prison term was up, Miami immigration authorities in October 2010 released him from custody. Two months later, North Miami police say, he slaughtered three people, including a 15-year-old girl in a murder case that remains as baffling today as it did the afternoon the bodies were discovered.

DNA on a rifle found inside the house and cellphone tracking technology later linked Dufrene to the Jan. 2, 2011, slayings.

But North Miami detectives never got to interrogate him. Just 18 days after the murders, Dufrene shot and killed himself when he was cornered by Manatee County sheriff’s deputies in Bradenton after an unrelated break-in and shooting there.

The episode is a black eye for U.S. authorities, who by law could not detain Dufrene indefinitely after the Obama administration ordered a temporary halt of deportations to the island nation. 

[…]The failure to deport Dufrene infuriates the victims’ family members. “This guy shouldn’t have been in America,” said Audrey Hansack, 37, who moved back to her native Nicaragua after the murder of her daughter Ashley Chow. “I’m so upset with the whole situation. Because of immigration, my daughter is not alive.”

Just to be clear, the policy of the Obama administration is a backdoor amnesty.

Excerpt:

The Obama administration is taking steps to grant what amounts to amnesty to as many as 300,000 illegal aliens.

In a recent announcement on a sleepy August Friday in Washington, D.C., the Department of Homeland Security directed immigration enforcement officials to start dropping cases against as many deportable alien lawbreakers as possible.

The administration is clearing out removal cases wholesale.  Despite insisting that it will give them case-by-case treatment, an interagency committee is charged with finding all the cases it can to grant relief.

This backdoor amnesty broadens and encourages use of “prosecutorial discretion” on behalf of foreigners who face removal orders.  Not only will potentially thousands of illegals be allowed to remain in the United States, but the administration has also confirmed that those aliens can obtain work permits.

Democrats are soft on crime, and they favor amnesty for illegal immigrants. And this is the result of their views. Three dead people in Florida.