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To: TobagoJack who wrote (6293)	7/26/2001 12:38:27 PM
From: rolatzi	Respond to of 74559

Re: minimum wage I'm not sure that the minimum wage is much of a problem to the largest US companies which are already largely globalized. After all they can move their manufacturing and service overseas where wages are so much lower than in the US and accrue significant economies. IMHO the future battle will be how to get minimum wage structures in the third world so that they are less able to compete with US for jobs. The opening shots have already been fired over the issue of child labor with the ensuing boycotts of Nike and The Gap, for example. A second example is the current controversy over allowing Mexican truckers to carry all over the US. Unionization campaigns in third world countries and support of unions by American Labor Unions will intensify.

To: TobagoJack who wrote (6293)	7/26/2001 12:40:57 PM
From: Cogito Ergo Sum	Respond to of 74559

Yep, West is right . Greenspan certainly said that he thought the minimum wage was harmful though the exact words escape me. He was also questioned on this point. regards Kastel edit: another break from the chimp work. Damn customers keep calling today. Nice problem to have so I count my blessings.

To: TobagoJack who wrote (6293)	7/26/2001 12:53:17 PM
From: Ilaine	Read Replies (1) \| Respond to of 74559

I can confirm that Greenspan said that he thought the minimum wage should be abolished - I was listening to his testimony on C-Span radio. When I heard this, I realized that he remains at heart a libertarian. His argument - which I agree with - is that the vast majority of workers who are paid minimum wage in the US are teenagers who are just starting out in the job market, who are being taught usable skills so that they can move up to higher paying jobs. Even though the labor market was very tight in the US last year and the year before, many unskilled teenagers were unable to get jobs, so were not learning the usable skills they need. Every year they delay entering the job market reduces their lifetime earnings, because they will always earn less money than the cadre of age cohorts who entered the job market earlier than they did. The gap between the haves and the have-nots widens. Another problem with the minimum wage is that it is a one-size-fits all rate. Here in the DC metro area, entry level jobs pay at least $7 an hour, so it doesn't really make any difference what the minimum wage rate is. In a community with a lower pay rate, it does shut some kids out of jobs. A couple of months ago there was a knock-down-drag-out fight on the CFZ about minimum wage. Apparently some adults who are family breadwinners are paid minimum wage, so the emotional strings on the violins get played - how can we be so hard-hearted as to force these people who work full time to remain in poverty for their entire lives? Forget the fact that a skilled employee earns more than minimum wage - who cares about facts? Emotion is what matters. The argument about unemployed teenagers is played on the emotional strings, as well. Greenspan was focusing on effect because he is dealing with result-oriented people, not people with principles. The Congress has to please the constituents to get re-elected. In the context of a slow-down, abolishing minimum wage could do a lot - cutting labor costs may mean the difference between survival and bankruptcy. The real question is, what business is it of the government to tell employers what they should pay their employees? I realize that for Euro-socialists, this question is meaningless.