{"id":12920,"date":"2013-03-19T18:24:25","date_gmt":"2013-03-19T18:24:25","guid":{"rendered":""},"modified":"2013-03-19T18:24:25","modified_gmt":"2013-03-19T18:24:25","slug":"elizabeth_warren_s_minimum_wage_fallacy","status":"publish","type":"post","link":"https:\/\/admin.rushlimbaugh.com\/daily\/2013\/03\/19\/elizabeth_warren_s_minimum_wage_fallacy\/","title":{"rendered":"Elizabeth Warren\u2019s Minimum Wage Fallacy"},"content":{"rendered":"<p><a href=\"\/\/videos\/37\/48487\" target=\"_blank\"><img class=\"alignright\" src=\"https:\/\/live-rush-limbaugh.pantheonsite.io\/wp-content\/uploads\/listentoit.jpg\" alt=\"Listen to it Button\"><\/a><\/p>\n<p>RUSH: Let\u2019s go to the audio sound bites. This is always fun to try. It\u2019s one of the hardest things to explain to people who have a difficult time understanding economics. You know, economics is one of these things that\u2019s so common sense simple that it\u2019s complicated. Really, even to me. Economics is one of the most complicated simple things. By that I mean once a simple, logical explanation is given to answer a question about economics, everybody who hears the answer says, &#8220;Oh, that\u2019s so simple. Why wasn\u2019t I able to think of that?&#8221;<\/p>\n<p>It\u2019s curious. It has always been curious. Now, the minimum wage. I\u2019ve been doing this program a long time. We\u2019re in our 25th year, and the minimum wage, like clockwork, is gonna come up every other year. And it\u2019s gonna come up the same thing way it always comes up. &#8220;Nobody can live on the minimum wage! It\u2019s unfair. It\u2019s un-American. A family of four can\u2019t live on the minimum wage! We need to raise the minimum wage.&#8221;<\/p>\n<p><iframe loading=\"lazy\" width=\"585\" height=\"315\" src=\"http:\/\/www.youtube.com\/embed\/ABM0_L_5vLw\" frameborder=\"0\" allowfullscreen><\/iframe><\/p>\n<p>People go, &#8220;Yeah! Yeah! It\u2019s really not fair. People can\u2019t live on $10 an hour,&#8221; and then you explain to people why the minimum wage actually causes unemployment and you lose \u2019em. Before the program today, I watched one of the most easily understood and brilliant economists of our time Milton Friedman, explain this to Charlie Rose. It\u2019s from many, many moons ago back when Charlie parted his hair on the side and there was a lot of it.<\/p>\n<p>I mean, his hair was so odd looking, I didn\u2019t recognize that it was Charlie until I took a second and third look at it. I still wasn\u2019t sure \u2019til he opened his mouth and started responding to Dr. Friedman. The way it always gets started is, &#8220;The minimum wage is too low! A family of four couldn\u2019t possibly live on this. It\u2019s so unfair. We\u2019ve gotta raise the minimum wage,&#8221; and then somebody will come along and say, &#8220;No, no. The minimum wage is the best way to guarantee that low-skilled or unskilled labor never gets hired,&#8221; and that\u2019s where you lose people.<\/p>\n<p>I think one of the reasons people have a tough time understanding it is they don\u2019t really fully understand what a job is, and they don\u2019t really fully appreciate what the purpose of a business is, a large or small business. Even as we speak today, I would wager you\u2019d be shocked if you went out and picked an average focus group of low-information voters and asked them, &#8220;What is the purpose of a corporation?&#8221;<\/p>\n<p>You would be shocked at the answers that you would get. &#8220;Well, it\u2019s to provide health care for people in the community. Well, a corporation is to provide jobs.&#8221; Or you would get, &#8220;Well, corporations aren\u2019t people! Corporations are evil and they just make products that kill people and they overcharge.&#8221; You\u2019d get everything under the sun but the right answer. And then what\u2019s the purpose of a job? &#8220;Well, so that the community has people that work and can get health care.&#8221;<\/p>\n<p>No, that\u2019s not why there are jobs. So then the minimum wage gets thrown into this. It\u2019s always an interesting exercise for me. I haven\u2019t done it lately because everybody in this audience is now up to speed on it, but in the early days of this program I would try a trick. Minimum wage is the topic, and let\u2019s say at the time it\u2019s $7.50 an hour. Somebody calls and says, &#8220;It ought to be $10!&#8221;<\/p>\n<p>I\u2019d say, &#8220;Yeah, you\u2019re right. Why not $15?&#8221;<\/p>\n<p>&#8220;Yeah, okay! Make it $15.&#8221;<\/p>\n<p>&#8220;Well, why stop there? Why shouldn\u2019t a minimum wage be $20 an hour?&#8221;<\/p>\n<p>&#8220;Yeah, okay. Right!&#8221;<\/p>\n<p>I\u2019d finally say, &#8220;You know, let\u2019s quit beating around the bush. Let\u2019s make the minimum wage $50 an hour.&#8221;<\/p>\n<p>At some point, they would stop me and say, &#8220;No, no, no. That\u2019s high enough.&#8221;<\/p>\n<p>At that point, you had them. Whatever the dollar amount they thought was too high was, that\u2019s when you\u2019d ask, &#8220;Well, why?&#8221;<\/p>\n<p>&#8220;Well, I mean, who are we talking about here? The minimum wage is for people that really don\u2019t know anything. It shouldn\u2019t be that much.&#8221;<\/p>\n<p>&#8220;Well, why?&#8221;<\/p>\n<p>That\u2019s been the only way I have found to properly get people that don\u2019t understand it to understand why the minimum wage is a bad thing. If you try to say that a wage that is arbitrarily chosen &#8212; that has no relationship to skill, ability, or work output &#8212; is no good, you lose people, because they think a job is charity. They think what somebody earns is almost a charity thing. People are owed money just because they\u2019re alive, and the purpose of a business is to be nice to the people that hire us and make sure that they can live.<\/p>\n<p>That\u2019s not what the purpose of a job is or the purpose of a business.<\/p>\n<p>But that sounds too cold and unfeeling for your average low-information voter.<\/p>\n<p>Now, it\u2019s gotten to the point now where even accredited institutions of higher learning academics don\u2019t get the minimum wage &#8212; or you newly elected senators, such as Elizabeth Warren who said, &#8220;<a target=\"_blank\" href=\"https:\/\/live-rush-limbaugh.pantheonsite.io\/?p=14662\">You didn\u2019t build that! You couldn\u2019t make that happen.<\/a> All of us made that happen for you.&#8221; Last Thursday during a Senate Help Committee hearing entitled &#8220;Keeping Up with the Changing Economy, Indexing the Minimum Wage,&#8221; Senator Elizabeth Warren asked University of Massachusetts economics professor, Dr. Arindrajit Dube, this question&#8230;<\/p>\n<p>WARREN: If we started in 1960, and we said that as productivity goes up &#8212; that is, as workers are producing more &#8212; then the minimum wage is gonna go up the same, and if that were the case, the minimum wage today would be about $22 an hour. So my question, Mr. Dube &#8212; with a minimum page of $7.25 an hour &#8212; is, &#8220;What happened to the other $14.75?&#8221;<\/p>\n<p>RUSH: So, you see what\u2019s being set up?<\/p>\n<p>The minimum wage, based on what it was when we started it &#8212; and then you factor in economic growth, inflation, and all the differing factors that have changed. If the minimum wage today were to stay equal to $7.25 or whatever it was when it started, it would be $22 bucks an hour now. &#8220;Why isn\u2019t it? Why are people getting screwed, Dr. Dube? Why are these evil corporations hoarding that money and not giving it to &#8216;the workers\u2019?&#8221;<\/p>\n<p><iframe loading=\"lazy\" width=\"585\" height=\"315\" src=\"http:\/\/www.youtube.com\/embed\/hOyDR2b71ag\" frameborder=\"0\" allowfullscreen><\/iframe><\/p>\n<p>Now, this Dr. Dube himself is entirely clueless, and this is one reason why it is a risk for you to send your kids to a college today, because they\u2019re gonna come out also clueless, and they\u2019re gonna end up being politically &#8212; well, not educated, but propagandized, indoctrinated. Here is Dr. Dube\u2019s response to the question, &#8220;What happened to the other $14.75?&#8221;<\/p>\n<p>DUBE:  That\u2019s correct.  Since the early seventies, what we have seen is a divergence in the prosperities of different sections of our population. So, for instance, had the minimum wage kept pace with productivity since 1960, you\u2019re correct, it would have stood around $22 an hour today.  Now, the answer to your question, who got the other $14, we can answer with the following comparison.  Had the minimum wage grown at the same pace of incomes going to the top 1% of the taxpayers, the minimum wage would have stood at $33 an hour before the recession in 2007.<\/p>\n<p>RUSH:  Oh, my God, it\u2019s even worse, the conspiracy.  The rich people took the $14.75 and even more, they just took it.  It should be $33 an hour.  But you see, folks, it\u2019s a lost cause to try to explain this to people.  &#8216;Cause if you are rooted in this emotionally and all you think about is the concept of fairness, and corporations and businesses are evil and try to get away with hurting people, you\u2019re never gonna understand.  Never.  There\u2019s nobody better than I, El Rushbo, at making the complex understandable. <\/p>\n<p>(interruption)<\/p>\n<p><img id=\"eZObject_74248\" class=\"aligncenter\" align=\"middle\" alt=\"original\" src=\"https:\/\/live-rush-limbaugh.pantheonsite.io\/wp-content\/uploads\/WarrenDubePIX.jpg\"\/><BR\/>Well, can you go to their bank accounts and get it?  Yeah, that\u2019d be fair. That\u2019d be fair, a little Cyprus action.  Just go to their bank accounts and get it from \u2019em. They didn\u2019t earn it anyway, the top 1%, everybody knows this is exactly how, in fact, the rich got rich.  This how they stole the money that was due the poor.  This is how it happened.  Minimum wage people ought to be getting $33 an hour today, and they\u2019re only getting seven. The 1% grabbed it, and that\u2019s how they got rich.  That\u2019s the conclusion here.  It is woefully wrong, embarrassingly, woefully wrong.  I can tell you why, but if you are invested in all this emotionally, you don\u2019t stand a prayer of understanding it.  I\u2019m sorry.  And it may not even be worth my time to try.<\/line><\/p>\n<p>BREAK TRANSCRIPT<\/p>\n<p>RUSH:  Now, the first thing they\u2019re gonna tell you is that all of these numbers that Elizabeth Warren and Dr. Dube used were made up.  There is no equivalent today of $22 an hour minimum wage.  I went to the US government\u2019s own inflation calculator website.  I went back to 1968, and I plugged in $1.60.  In 1968 I was making a buck and a quarter.  It was not minimum wage, it\u2019s just what the job offered.  Somebody who had never done it before.  That\u2019s what it was worth to the people that hired me.  And I\u2019m gonna tell you this.  If the minimum wage had been five bucks, I would not-a gotten hired.  They woulda hired somebody that knew what they were doing. <\/p>\n<p>They were not gonna pay somebody five dollars an hour who had no idea.  It was not an apprenticeship. They had a real job that needed to be done.  The fallacy of the minimum wage is it eliminates jobs.  It keeps inexperienced people out of the workforce.  The higher it goes, the more unemployment there is.  You\u2019ve gotta totally wipe out this notion of fairness.  That\u2019s not what a job is.  It isn\u2019t charity.  The price of a job is not related to what it costs to live.  The price of a job is what the business owner values that work to be.  And, of course, he wants to pay as little for it as he can and still get the job done. <\/p>\n<p>When I worked at the Kansas City Royals &#8212; and this is not to criticize them &#8212; 1979, I\u2019m 28 years old, $12,000 a year.  That, folks, was nothing.  And you know what?  There were people who would have done it for less than that.  Baseball teams, sports teams have groupies lined up all down the block wanting to work there.  There was no reason to pay what I was doing any more than that.  It didn\u2019t matter, fairness or any of that.  It\u2019s what the job was.  And if I wanted it, that\u2019s what it paid.  And the minimum wage, if there had been a minimum wage of $20,000 a year for that job, I wouldn\u2019t have gotten it. I\u2019d never done the job before.  Or they would have eliminated the job, more than likely. <\/p>\n<p>But when you arbitrarily attach a price to a job, any job, minimum wage, be it hamburger flipper or working at a department store, whatever, when there\u2019s no relationship to the job itself, just it\u2019s a job, then there\u2019s no market force involved, and it\u2019s totally artificial, and I\u2019m gonna tell you the real reason there\u2019s a minimum wage and the real reason people want it high. It\u2019s the labor unions.  The higher the minimum wage, the more they can claim they are owed.  If the minimum wage, the highest it can be is what you pay somebody that doesn\u2019t know diddly-squat about what they\u2019re doing, and make no mistake, minimum wage is entry-level work. If you\u2019re gonna pay somebody that has no experience and no know how and doesn\u2019t know beans about what they\u2019re doing, ten bucks an hour, then I, the union bricklayer, ought to make 50, and that\u2019s what they do. <\/p>\n<p>It keeps truly, novice unqualified people out of the workforce, and that\u2019s not good because they don\u2019t learn skills.  You want people working.  The minimum wage was never designed for people to be able to feed a family of four on it.  The minimum wage is a flawed concept from the get-go anyway.  But people can\u2019t get their arms around the notion of how it eliminates jobs.  Now, in 1968, I don\u2019t know what the average &#8212; I don\u2019t even know if there was a minimum wage in 1968 &#8212; I don\u2019t know when it started, but I just chose an arbitrary figure of $1.60 an hour as a minimum wage, 1968, when I was 17.  So $1.60 in 1968 is worth $10.67 today. <\/p>\n<p>So when Elizabeth Warren sits there with Dr. Dube and tells you that the minimum wage ought to be $22 an hour based on what it was when it started, that\u2019s entirely made up.  And then when he comes back and says, &#8220;Well, yeah, and if you relate it to the wage gains in the top 1%, ha-ha, then, Senator, it ought to be 33.&#8221;  They\u2019re just making these numbers up.  So $1.60 in 1968 is equivalent to $10.67 today, not 22, and not 33.  Anyway, that\u2019s the best I can do, and if you\u2019re still lost, you are forever going to be lost on this. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>RUSH: Let\u2019s go to the audio sound bites. This is always fun to try. It\u2019s one of the hardest things to explain to people who have a difficult time understanding economics. You know, economics is one of these things that\u2019s so common sense simple that it\u2019s complicated. Really, even to me. Economics is one of [&hellip;]<\/p>\n","protected":false},"author":14,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","ngg_post_thumbnail":0},"categories":[],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v17.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Elizabeth Warren&#039;s Minimum Wage Fallacy - The Rush Limbaugh Show<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/live-rush-limbaugh.pantheonsite.io\/daily\/2013\/03\/19\/elizabeth_warren_s_minimum_wage_fallacy\/\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:title\" content=\"Elizabeth Warren&#039;s Minimum Wage Fallacy - The Rush Limbaugh Show\" \/>\n<meta name=\"twitter:description\" content=\"RUSH: Let\u2019s go to the audio sound bites. This is always fun to try. It\u2019s one of the hardest things to explain to people who have a difficult time understanding economics. You know, economics is one of these things that\u2019s so common sense simple that it\u2019s complicated. Really, even to me. Economics is one of [&hellip;]\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/live-rush-limbaugh.pantheonsite.io\/wp-content\/uploads\/listentoit.jpg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"GeorgePrayias\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"11 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebSite\",\"@id\":\"https:\/\/live-rush-limbaugh.pantheonsite.io\/#website\",\"url\":\"https:\/\/live-rush-limbaugh.pantheonsite.io\/\",\"name\":\"The Rush Limbaugh Show\",\"description\":\"Excellence In Broadcasting\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/live-rush-limbaugh.pantheonsite.io\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/live-rush-limbaugh.pantheonsite.io\/daily\/2013\/03\/19\/elizabeth_warren_s_minimum_wage_fallacy\/#primaryimage\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/live-rush-limbaugh.pantheonsite.io\/wp-content\/uploads\/listentoit.jpg\",\"contentUrl\":\"https:\/\/live-rush-limbaugh.pantheonsite.io\/wp-content\/uploads\/listentoit.jpg\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/live-rush-limbaugh.pantheonsite.io\/daily\/2013\/03\/19\/elizabeth_warren_s_minimum_wage_fallacy\/#webpage\",\"url\":\"https:\/\/live-rush-limbaugh.pantheonsite.io\/daily\/2013\/03\/19\/elizabeth_warren_s_minimum_wage_fallacy\/\",\"name\":\"Elizabeth Warren's Minimum Wage Fallacy - The Rush Limbaugh Show\",\"isPartOf\":{\"@id\":\"https:\/\/live-rush-limbaugh.pantheonsite.io\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/live-rush-limbaugh.pantheonsite.io\/daily\/2013\/03\/19\/elizabeth_warren_s_minimum_wage_fallacy\/#primaryimage\"},\"datePublished\":\"2013-03-19T18:24:25+00:00\",\"dateModified\":\"2013-03-19T18:24:25+00:00\",\"author\":{\"@id\":\"https:\/\/live-rush-limbaugh.pantheonsite.io\/#\/schema\/person\/9a33276eb9dc5b6d3f8218957f30e6b4\"},\"breadcrumb\":{\"@id\":\"https:\/\/live-rush-limbaugh.pantheonsite.io\/daily\/2013\/03\/19\/elizabeth_warren_s_minimum_wage_fallacy\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/live-rush-limbaugh.pantheonsite.io\/daily\/2013\/03\/19\/elizabeth_warren_s_minimum_wage_fallacy\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/live-rush-limbaugh.pantheonsite.io\/daily\/2013\/03\/19\/elizabeth_warren_s_minimum_wage_fallacy\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/live-rush-limbaugh.pantheonsite.io\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Elizabeth Warren\\u2019s Minimum Wage Fallacy\"}]},{\"@type\":\"Person\",\"@id\":\"https:\/\/live-rush-limbaugh.pantheonsite.io\/#\/schema\/person\/9a33276eb9dc5b6d3f8218957f30e6b4\",\"name\":\"GeorgePrayias\",\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/live-rush-limbaugh.pantheonsite.io\/#personlogo\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/d290ab65e2eaca3719268528f83b85bf?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/d290ab65e2eaca3719268528f83b85bf?s=96&d=mm&r=g\",\"caption\":\"GeorgePrayias\"},\"url\":\"https:\/\/admin.rushlimbaugh.com\/daily\/author\/GeorgePrayias\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Elizabeth Warren's Minimum Wage Fallacy - The Rush Limbaugh Show","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/live-rush-limbaugh.pantheonsite.io\/daily\/2013\/03\/19\/elizabeth_warren_s_minimum_wage_fallacy\/","twitter_card":"summary","twitter_title":"Elizabeth Warren's Minimum Wage Fallacy - The Rush Limbaugh Show","twitter_description":"RUSH: Let\u2019s go to the audio sound bites. This is always fun to try. It\u2019s one of the hardest things to explain to people who have a difficult time understanding economics. You know, economics is one of these things that\u2019s so common sense simple that it\u2019s complicated. Really, even to me. 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