Milton Friedman On The Unholy Coalitions Of The Minimum Wage

Tyler Durden's picture




 

This week we were told that, by the magic of a non-deficit-increasing wave of our President's hand, the minimum wage should be increased to $9 (a 24% rise from the current $7.25 federal minimum wage) and anchored to inflation going forward. The rabbit-holes of whether this is a good or bad thing run deep and in very different directions. However, in three short minutes, Milton Friedman provides some critically clarifying truthiness on the unholy coalitions between 'do-gooders', 'special interests', 'trade unions', and the vicious circle that this non-market-based decision will create. "Do-Gooders believe passing a law saying nobody shall get less than [a minimum wage] is helping poor people (who need the money). You're doing nothing of the kind. What you're doing is to ensure that people whose skills do not justify that wage will be unemployed." It is no accident that youth unemployment is almost double the overall unemployment rate. We never learn... and as Friedman concludes, "it is the exact people who the do-gooders are trying to help that are hurt the most - the poorest!"

 

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Sat, 02/16/2013 - 15:17 | 3249821 Tom Brady
Tom Brady's picture

Friedman is a legend.  Obama is a worthless cocksucker.

Sat, 02/16/2013 - 15:19 | 3249824 chubbar
chubbar's picture

Obama may have to address the Supreme court on this lawsuit. The Supremes rule on Tuesday!

President Harrison J. Bounel

February 15, 2013 by Bob Livingston

Who is Harrison J. Bounel? According to the 2009 tax return submitted by President Barack Obama, he’s the President of the United States. All nine U.S. Supreme Court Justices are scheduled to discuss this anomaly today.

The case in question is Edward Noonan, et al v. Deborah Bowen, California Secretary of State, and the Justices are finally looking at it thanks to the dogged determination of Orly Taitz. The case calls into question many of the documents Obama (Bounel, Soetoro, Soebarkah, etc.) has used and/or released as authentic since he came on the national scene. The case contends that the documents — birth certificate, Social Security number, Selective Service registration, etc. — are fakes or forgeries. If that’s the case, Obama should not have been on the California ballot in 2008 and, therefore, should not have received the State’s electoral votes.

Four of the nine Justices must vote to move the case forward. We’ll see.

Meantime, on Feb. 4, Kathleen O’Leary, presiding judge of the 4th District Court of Appeal, reinstated the appeal of Taitz v. Obama et al filed by Taitz when she ran for Senate. That case involves evidence of 1.5 million invalid voter registrations in the State of California. The appeal also involves Obama’s lack of legitimacy to hold the office of President based on his forged IDs, stolen Connecticut Social Security number, the fact the last name he’s using is not legally his and his fraudulent claim to be the U.S. citizen.

Evidence in the case includes:

  • A certified copy of the passport records of Obama’s mother, Stanley Ann Dunham, showing her son’s legal last name to be Soebarkah, not Obama.

     

  • Obama’s school records from Indonesia, showing his citizenship to be Indonesian.

     

  • Sworn affidavits of top law enforcement experts and investigators, showing Obama’s birth certificate and Selective Service certificate are forgeries and that the Social Security number used by Obama on his 2009 tax returns as posted on WhiteHouse.gov was fraudulent. (The SSN failed when checked through both E-Verify and the Social Security Number Verification Service.)

On another legal front, Obama defaulted in the case of Grinols et al v. Obama et al on Jan. 30 when he failed to file a response within 21 days of being served notice of the suit. This case also involves Obama’s phony SSN.

The suit states:

[I]nvestigator Albert Hendershot found in the database ofhttp://www.acxiom.com/identity-solutions/acxiom-identity-batch-solutions/ the name of the individual whose Social Security Obama is using. Acxciom-batch-solutions showed (Exhibit 1) that Harry J Bounel with the same Social Security number xxx-xx-4425 at 5046 S Greenwood Ave in Chicago, home address of Barack Obama, Database shows Bounel with the same address and Social Security number as Barack Obama himself. According to the databases last changes to the information on Harrison (Harry) J Bounel were made in and around November 2009 by Michelle Obama, who is listed as Bounel’s relative. Database changes can involve entering the information or deletion of information. It appears that changes made by relative Michelle Obama included deletion of information, which was done at a time when Taitz brought to Federal court in the Central District of California before Judge David O. Carter a case of election challenge by her client, former U.S. ambassador Dr. Alan Keyes and 40 state Representatives and high ranked members of the U.S. Military.

Recently obtained results of the 1940 census, Exhibit 2, provided the last missing link, link (sic) between Harry J. Bounel and the date of birth of 1890. Exhibit 2 shows the printout of the U.S. census, showing Harry J Bounel, immigrant from Russia, residing at 915 Daly Ave, Bronx, NY, age 50 during the 1940 census, meaning he was born in 1890, as shown in the affidavit of Investigators Daniels and Sankey.

There is a pattern of Obstruction of Justice and tampering with the official records and falsification/forgery of the official records related to Obama. This happens in particular when [George W.] Bush employees leave their positions and are replaced by Obama appointees.

Taitz has asked for expedited default judgment and post judgment discovery in this case out of fear that any records on hand at the Social Security office will be destroyed when George W. Bush-appointed Commissioner Michael Astrue leaves office in February. Records that might have proven Obama’s Selective Service registration was a forgery were destroyed in 2009 after Bush-appointed Selective Service Director William Chatfield resigned, Taitz alleges.

Sat, 02/16/2013 - 15:25 | 3249845 the grateful un...
the grateful unemployed's picture

we know Obama is a fraud, but W Bush was born in America, so how do you explain that?

Sat, 02/16/2013 - 15:48 | 3249930 Brixton Guns
Brixton Guns's picture

Apparently you can't read.  The lawsuit names Slick Barry as defendant, not W.

Sat, 02/16/2013 - 16:41 | 3250039 the grateful un...
the grateful unemployed's picture

both of them butt humped the constitution. al capone wasn't born in america either was he? i don't know, point being i guess it doesnt matter

Sat, 02/16/2013 - 17:06 | 3250074 steve from virginia
steve from virginia's picture

 

 

I have it on good authority ... from a member of Bill 'Evil' Belichick's staff ... that New England Patriots' quaterback Tom Brady is really locked up in a prison cell in Pyongyang and that the quarterback everyone sees during Patriots' games is a North Korean-made robot.

 

I have similar inside information that the real George W. Bush is in the cell next to Brady's in Pyongyang and that the president seen on TV was also a North Korean-made robot.

 

Quote: "No complaining about robot! Verry excellent president for a robot! Like to see your robot do any better!" Un-quote.

 

A cord runs down these robots' legs to a controller that is out of the line of sight.

 

I have also heard rumors that singer Aimee Mann was also replaced by a robot, no confirmation ...

 

As for Obama .... he he he!

Sat, 02/16/2013 - 19:13 | 3250344 Cow
Cow's picture

weak attempt to deflect

Sun, 02/17/2013 - 20:08 | 3251987 caconhma
caconhma's picture

What do Obama, Clinton, GWB, Ronald Reagan, and Milton Friedman have in common? They are all liars and fraudsters:

·         Nobody, except America rulers, really knows who Obama is. But the man has a mission to ruin America to a point of no return. He is American Gorbachev.

·         Ronald Reagan and Milton Friedman were shills.  They were all for a free-market system and liberty from excessive government. But it was just a show. Their actions were quite different

o   Reagan was promoting financial market manipulations with “the Plunge Protection Team”, leverage buyouts, insider trading, runaway budget deficits

o    It was Reagan who appointed Alan Greenspan whose understanding of a free-market was somewhat perverted, i.e., financial markets must be free from fraud and thievery prosecutions

o   Ronald Reagan has killed the Saving & Loan industry removing the last competition to the banking sector

o   It was the Reagan amnesty for illegal immigrants

o   As for Milton Friedman, he was for free-market economy functioning under control and guidance of the FED. He spent all his live trying to justify FED actions and make FED more “efficient”

·         There is absolutely no need to discuss Bill Clinton honesty and integrity

 

Mon, 02/18/2013 - 04:16 | 3252505 All Risk No Reward
All Risk No Reward's picture

No, he can read alright - and think, something you aren't doing, nore your 27 up votes.

The problem is bigger than Obama.

Bush, McCain, Obama, Romney - they are mere chess pieces - and all of the same color.

Big Finance Capital is running the show through their various puppets. 

Obama is trash, but so is Romney, bush and anyone else Big Finance Capital bankrolls to lie to the people and f* them up.  So why not focus on the root cause instead of puppets?

Because your priorities are wrong.

Please fix them - it is the only chance we have.  Arrogance that doesn't allow continuous improvement is anopther big problem.

Debt Money Tyranny

http://www.keepandshare.com/doc/4768883/debtmoneytyranny-6-1-pdf-60k?tr=77

Mon, 02/18/2013 - 04:53 | 3252523 All Risk No Reward
All Risk No Reward's picture

Minimum wage is peanuts and a side show compared to Debt Money Tyranny

http://www.keepandshare.com/doc/4768883/debtmoneytyranny-6-1-pdf-60k?tr=77

Why do we waste our time discussin the small potatoes instead of the elephant in the middle of the room?

Sat, 02/16/2013 - 16:12 | 3249983 world_debt_slave
world_debt_slave's picture

Manchurian

Sat, 02/16/2013 - 16:37 | 3250030 Monedas
Monedas's picture

Obama IS a fraud .... but he was born in American .... but, the truth of his birth is worse .... than just being born abroad !      www.obamasrealfather.com

Sat, 02/16/2013 - 16:53 | 3250052 the grateful un...
the grateful unemployed's picture

either way his real mother must have been a Kardashian

Sun, 02/17/2013 - 06:38 | 3251012 Stock Tips Inve...
Stock Tips Investment's picture

The minimum wage is one of the most negative factors in the fight against unemployment.

Mon, 02/18/2013 - 04:25 | 3252509 All Risk No Reward
All Risk No Reward's picture

The Big Finance Capital war oon small business is the #1-10 problems that faces small business.

Big Finance Capital corporate fronts steal most of the government contracts allocated to small business - by law.  Of course, that law is just a suggestion, so they don't have to do it.

Lloyd Chapman - American Small Business League

https://www.youtube.com/watch?v=F9gRk8E4jbk

https://www.youtube.com/watch?v=wo6Eo5LG3d0

The American tax incented offshoring of jobs to slave labor and pollution infested dictatorships is being used to bankrupt Americans - and increased regulation in America while ignorning the dictator controlled China crimes against humanity...  well, now you know the reality behind the false narrative.

“Whatever the price of the Chinese Revolution, it has obviously succeeded not only in producing more efficient and dedicated administration, but also in fostering high morale and community of purpose,” declared David Rockefeller. “The social experiment in China under Chairman Mao’s leadership is one of the most important and successful in human history.”
~David Rocckefeller

Mao and Rockefeller: Beck Fails to Call Out the Real Monsters

http://www.infowars.com/mao-and-rockefeller-beck-fails-to-call-out-the-r...

The New Wrold Order is the Old World Order... - tyrants lording it over their impoverished serfs...

Sat, 02/16/2013 - 15:54 | 3249942 Skateboarder
Skateboarder's picture

Whoa man. Sick information. Edited by the first beezy herself! What great theater we are treated to.

Sat, 02/16/2013 - 16:02 | 3249964 francis_sawyer
francis_sawyer's picture

This isn't going to interfere with his golf lessons with Hank Haney this weekend, or Chewbacca's ski trip is it?... 

Sat, 02/16/2013 - 16:29 | 3250013 Skateboarder
Skateboarder's picture

Two days of "work" a week can be exhausting when you da prez - you know, with the highest number of PTO hours on the clock ever.

Sat, 02/16/2013 - 18:25 | 3250246 Darth Stacker
Darth Stacker's picture

Hey Francis (I mean Psycho) Chewbacca......really? Hahhahaha!!!!! That's funny sh*t!

Sat, 02/16/2013 - 19:24 | 3250365 jballz
jballz's picture

Hahaha you think it matters.

Who gives a fuck? You can shitcan bo tomorrow and nothing changes. What part of above the law do you not understand?

Seems some folks just can't stand having a niggah in the whitehouse, they want some white old money scumbag to lie to them instead.

Good luck with your lawsuits, nobody gives a fuck.

Sat, 02/16/2013 - 20:02 | 3250434 the grateful un...
the grateful unemployed's picture

this isn't any different than heritage and ken starr running around the country looking for bill clintons girl friends. its been bad a long time ducklings, and the fact that obama isn't a citizen is a separate issue from his lack of truthfulness as president. but somebody reelected the guy, and maybe it was a bunch of algorithms programmed into the diebold system, i really don't know. i'd like to see him go home early (maybe he can be a community organizer in Chicago, to help stop the violence, oh thats right he already licked that problem) but the bush people were running loose like a rogue asteroid inside the upper atmosphere. they were going to turn this country into a one party nation. obama knows it too, but he gets to play the game, lucky him.

Sun, 02/17/2013 - 22:18 | 3252158 Ned Zeppelin
Ned Zeppelin's picture

You are crazy (referring to the knuclkehead who posted about the phony Obama Supreme Court case)

Sat, 02/16/2013 - 15:31 | 3249864 Clayton Bigsby
Clayton Bigsby's picture

Took the words right out of my mouth...

Sat, 02/16/2013 - 22:17 | 3250630 upWising
upWising's picture

Executive suites are like septic tanks: The shit rises to the top, floats around far too long and stinks up the place, and ever so slowly rots and sinks to the bottom where it belongs.  In the process a lot of volatile gases are created.

If every executive was paid what s/he was worth, the MAXIMUM CEO wage would drop to $5,25 hour.  Providing "vision" (with a white cane), braying and mooing "Mission(ary position) Statements" and "articulating Shared Values" (such as prevarication, book-cooking, and overt theft) :: we can do without these "skills."

The people who DO the work, sweat the sweat, answer the phones, dive the machines, fix the machines, dump the trash and clean the shitters : they are the ones who do the REAL work and deserve to make real money so they can live decently.

Sat, 02/16/2013 - 16:03 | 3249967 shinola
shinola's picture

Friedman is an ass.

 

Belongs to the same "let's pass off economic theology as science" club as Krugman.

 

Sat, 02/16/2013 - 17:39 | 3250121 orez65
orez65's picture

Friedman may be an ass but he is correct about the minimum wage law.

Sat, 02/16/2013 - 23:04 | 3250686 James_Cole
James_Cole's picture

First, minimum wage has been falling precipitously for many decades in real terms.

Second, no he's not correct about the minimum wage law. Sure, for brain dead morons who can't be bothered to look into it for 2 seconds and would simply prefer to go along with Friedman's propaganda this line of reasoning makes sense "What you're doing is to ensure that people whose skills do not justify that wage will be unemployed."

Friedman has been proven wrong on this point over and over. >>Show a correlation between countries with a higher level of unemployment and a higher minimum wage over time.<< Oh you can't? 

And finally, there is often very little 'justification' between one's particular skills and one's earnings. Why the fuck do you think companies like slave labour under totalitarian governments so much?? I guess it's simple supply and demand, nothing to do with being able to force a lower wage / no benefits on the workforce. 

Aapl had a 46% margin in q2 2012, guess they would've been fucked if they were forced to pay their assembly workers a living wage for hrs worked. Would probably just close up shop and stop shipping iphones! 

Sat, 02/16/2013 - 23:34 | 3250726 chunkylover42
chunkylover42's picture

>>Show a correlation betweencountries with a higher level of unemployment and a higher minimum wage over time.<< Oh you can't? 

 

This is an astoudingly weak argument.  1) correlation is not causation (or if you prefer, absence of evidence is not evidence of absence) 2)the unemployment rate is influenced by many factors beyond just the cost of labor.

And while we can all think of the dumbass that makes 50% more than people much more qualified than him, it's not necessarily true in the aggregate, especially at the low end of the pay scale.  A lot of minimum wage workers are teenagers just entering the work force.  Guess what?  They have very few skills.  But if businesses are forced to pay them more than what they're worth, fewer of them will get hired, which means fewer of them start learning how to be a productive part of the work force.  

Sun, 02/17/2013 - 00:16 | 3250772 James_Cole
James_Cole's picture

2)the unemployment rate is influenced by many factors beyond just the cost of labor.

Yes exactly............................................

"This is an astoudingly weak argument."

Exactly what I think when people zero in on a marginal minimum wage as a factor in unemployment. There's a good case to be made for a minimum wage on a variety of factors, the counter argument (including Friedman's) is usually some flimsy nonsense hinging on higher overall unemployment. 

"A lot of minimum wage workers are teenagers just entering the work force."

Define "a lot" as a percentage. 

"But if businesses are forced to pay them more than what they're worth, fewer of them will get hired, which means fewer of them start learning how to be a productive part of the work force."

I outlined this further elsewhere on this thread but any business that hires unnecessary workers due to a ~$2 cheaper minimum wage shouldn't be in business. 

The reality is business will always pay their workers as cheap as the labour market demands or legally possible, this has always been the case. Wages of workers in Bangladesh have no relationship to the final product they are making, it's simply labour market "flexibility."

"But if businesses are forced to pay them more than what they're worth"

This comes down to a philosophical argument, but fundamentally what something is "worth" is what a buyer is willing to buy for and a seller is willing to sell for. It's a push and a pull, fortunately for labour most products are sold at a very higher margin, unfortunately for labour there is very little co-ordination among human capital to protect it's worth. 

Sun, 02/17/2013 - 04:43 | 3250959 StychoKiller
StychoKiller's picture

If minimum wage is such a great idea, then why not go whole hog and raise it to $1,000/hr?

Kinda proves what an idiotic idea it truly is!

Sun, 02/17/2013 - 06:11 | 3250997 Kiwi Pete
Kiwi Pete's picture

On the other hand why dont you guys bring back slavery and create full employment overnight.

Sun, 02/17/2013 - 03:49 | 3250928 PhilofOz
PhilofOz's picture

The minimum wage in Australia (as a permanent worker) is $15.96 per hour. On top of that is the casual rate loading of 25% which makes it AU$19.95 per hour. At the present exchange rate that is US$20.55 per hour. I call bullshit on Friedman and his followers when I look at the overall economic health and employment situation in Australia when compared to the USA. (Unless you are a member of the 0.01% maybe)

Sun, 02/17/2013 - 06:22 | 3251001 PhilofOz
PhilofOz's picture

I can get a loaf of bread or a litre of milk for $1 at any of the major supermarkets in Australia. How much are the same items on average in the US? Even if you are correct that goods and services are close to double that of US, wages are triple for the same job at least giving the peasants some disposable income. I know a Filipina that worked like a dog as a cleaner in the US for $7.25 an hour, she returned to the Philippines in a wheelchair the scum hotels owners fucked her over so much. She now works in Australian hotels for AU$23.48 and they are competing for her services. The higher disposable income creates work wherever it's spent. Do you seriously dispute this? So instead of it going to them, the greed ridden 0.1% can go pay an extra million at the next auction for their next work of art or racehorse aquisition hey? Oh wow, that will create so much employment here!

Sun, 02/17/2013 - 10:14 | 3251111 moregoldplease
moregoldplease's picture

Do you mean the Chinese workers are making $7.25 an hour or a month?

Sun, 02/17/2013 - 16:48 | 3251707 zerozulu
zerozulu's picture

Working on minimum wage is nothing but slavery. In slavery master provided for food. where as employer pay you minimum wag for food.

Sun, 02/17/2013 - 12:06 | 3251220 keesooi
keesooi's picture

Yes, Germany (with no statutory Minimum wage) has a way higher youth unemployment rate (5.9%) than Spain (with its recently raised minimum wage) with 21.9%.
Yup, in the Keynesian Wonderland, up is down, demand increases when prices are increased, scarcity an opportunity cost do not exist, no structure to either capital or labor, and 5.9 is higher than 21.9.
I can only conclude that you must be saying this on purpose, nobody can be this stupid.

http://epp.eurostat.ec.europa.eu/statistics_explained/index.php?title=Fi...(%25).png&filetimestamp=20120502100338

Last time I checked, aapl did not force its employees to work for them, they were free to walk away and find a better job. Unfortunately, not all of us are "nobel laureates".

Sun, 02/17/2013 - 06:14 | 3250996 Oldrepublic
Oldrepublic's picture

re orez65

you are right, Ralph Nader posted this yesterday on commondreams

website, very interesting and also read the comments.

https://www.commondreams.org/view/2013/02/16-1

Sun, 02/17/2013 - 09:21 | 3251069 Bicycle Repairman
Bicycle Repairman's picture

"You're doing nothing of the kind. What you're doing is to ensure that people whose skills do not justify that wage will be unemployed.""

This is nonsense.  First off the jobs exist and must be and will be filled at the higher rate.  Second, what are the skills needed for minimum wage jobs?  Almost none.

In order to make up for the increased wages, managment will have to do its job and make the employees more productive.  Provided managment has the skills.

Sun, 02/17/2013 - 15:51 | 3251610 DangerClams
DangerClams's picture

You're not a professional Cost Estimator, are you?

Just checking.

Sat, 02/16/2013 - 16:10 | 3249978 world_debt_slave
world_debt_slave's picture

Both from Chi-ca-go

Sat, 02/16/2013 - 16:34 | 3250022 Monedas
Monedas's picture

Friedman is a Monedian level Libertarian .... and a good Jew .... for all you Socialist Jew haters !

Sat, 02/16/2013 - 16:40 | 3250038 Chuck Walla
Chuck Walla's picture

"You're doing nothing of the kind. What you're doing is to ensure that people whose skills do not justify that wage will be unemployed."

 

Jesus, Milt, maybe THATS  the plan?  Dependence forever until they have Obamacare kill the worthless?

 

FORWARD SOVIET!

Sun, 02/17/2013 - 17:36 | 3251778 Atomizer
Atomizer's picture

Milton Friedman - Orwellian Newspeak

Learn the techniques, spread the word.

Sat, 02/16/2013 - 15:20 | 3249829 bank guy in Brussels
bank guy in Brussels's picture

This is wrong.

Minimum wage works ... in our countries in north-west Continental Europe, we have what is actually zero poverty among legal residents ... everyone has health care ... crime is low, hardly anyone in prison ...little oppression by police, government, courts or lawyers ... and we even own guns too ... it is the closest thing to paradise ever built in human history

Friedman's monetarist theories have some merit ... but so does the European way of doing things

It does not do the world good to have everyone making the slave-labour wages in China and Bangladesh

 

Sat, 02/16/2013 - 15:24 | 3249843 frenchie
frenchie's picture

</sarc> missing

Sat, 02/16/2013 - 15:25 | 3249846 LetThemEatRand
LetThemEatRand's picture

What is interesting to me is that the same people who seem to understand that real price inflation has been running much higher than reported, also think the minimum wage (which in adjusted for real inflation dollars is a joke -- no adult can live on minimum wage) is somehow responsible for the lack of employment in the U.S.  The two have nothing to do with each other, yet the ridiculously low minimum wage is very responsible for many people not bothering to look for work and instead choosing welfare.

Sat, 02/16/2013 - 15:47 | 3249885 nope-1004
nope-1004's picture

Raising minimum wage is inflationary, no?  For sure it's a direct admission that the purchasing power of the dollar is falling, but Soebarkah would never publicly say that.

 

Sat, 02/16/2013 - 15:57 | 3249947 A Nanny Moose
A Nanny Moose's picture

Bingo! Thank you.

In the absence of critical thinking, evil rides on the back of good intentions.

Sat, 02/16/2013 - 16:55 | 3250057 Matt
Matt's picture

So, you guys still believe in the Keynesian definition of Inflation? It's funny when people like to mix and match different terms and ideas from different schools of thought.

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