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Winning the War on Poverty

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    Economist Walter Williams on race, economics and why government aid still has not conquered poverty.

  • Duration 7:34
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How can that -- Well let's ask the man who's -- and 25 years ago.

Economist Walter Williams and George Mason University so for the people at the bottom it's just natural to assume that a handout.

Would help lift them up.

Well I said that's it and that's that's a nice assumption to make but it didn't turn out that way there's a huge segment of the black population.

For whom.

-- -- mobility.

Is elusive.

And and I believe it's elusive because of -- well just think it's because of government.

Because of the help meant for them and you have written a new book credit touches on this titled.

The race and economics and one of the points you make in this book is that the minimum wage which overwhelmingly Americans support.

You say hurt.

People yes and and if you -- Look let's not look at the intentions behind them and wage goes that most for the most part the intentions at least United States are very good but we have to ask what are the effects of minimum wage.

And you find out the effects of minimum wage if you put yourself in the place from an employer.

And you must pay seven dollars and 25 cents no matter whom you hire.

Will let employer pay pay that amount and higher person who makes who who can only -- three or four dollars worth of value per hour.

That is the minimum wage discriminates against the employment of low skilled people to fewer of them get higher and that deception right and to get their feet on the bottom rung of the economic latter be employed and perhaps then move up.

And yet when I -- talk to people about this normal people not economists almost everyone says a living wage is essential.

I think when minimum wage is necessary to -- keep from exploiting workers couple of us.

It's really any money these days.

People always need money.

And 25 years ago Walter Williams documentary -- shop owners like this man who said He hires fewer people because of the minimum wage.

That was a good deal more job because I have -- costly coming up to me -- -- tell -- -- -- -- actually -- -- jobs -- -- And I wish I could you -- there were room.

Low minimum wage I could have maybe two or three more place to work -- like this.

I broke out of north sort of get a nearly thirty years ago and so did most of my friends.

My whole crowd working back in those days just -- any kid who look for a job could find one.

Today and get those like I grew up in the 70%.

A black children who look for jobs cannot find them.

And today that number is still about the same and the disparity between whites and blacks white males teenagers sixteen to nineteen.

27%.

Unemployment blackmail same age.

Almost twice as many more than half 52%.

Why would there be a racial difference -- America the minimal -- -- you'd think we've heard all -- Well as I said.

The minimum wage stands to discriminate against low skilled people so young people in general -- low -- because lacked maturity and experience of adults.

But black to young people not only share those handicaps in general.

But many of them get a fraud and fraudulent education the public school system so if there's a -- all that discriminates against low skilled people it's gonna have a doubly negative vote affect on black.

Teenagers and by the way John at one time in the forties black teenage unemployment was less than white teenage unemployment.

And today it is some multiple of it.

And it's changed because of the welfare -- -- because of the minimum wage law that is the minimum wage -- rose got higher and higher and higher.

And employers.

Discriminated and discriminate more in terms of -- hiring low skilled workers.

End.

Yet 83% of Americans according to a pew survey support raising the minimum -- I think people have been misguided notion.

That the minimum wage is an anti poverty tool but that does -- pass the smell test because.

If the minimum wage law could eliminate poverty -- just go to Bangladesh you go to Ethiopia you go to Haiti and say.

Raise the minimum wage there.

And we will you get rid of poverty know people are poor because for the most part they have low skills if you could -- with.

Minimum wage why seven point five it sort of cheap we should raise it to toy -- -- over a lot of the fact that.

-- economists understand this a survey of the American Economic Association found 90% of economists say.

Minimal wage increases unemployment.

And you've called it a great tool of races.

Now you can matter of fact some years ago I wrote a book called South Africa's war against capitalism.

And I did study -- -- labor markets in South Africa.

And why racist unions in South Africa that would never have a black as a member with a major supporters a -- wage laws for blacks.

And -- stated purpose.

Was to protect white workers from having to compete with low skill low wage black workers let's -- talk about welfare.

Again when I talk to people on the street most everyone's sent there ought to be government handouts for needy people.

-- we'll -- the hell yes of clients especially in this economy.

By 25 years ago Walter Williams pointed out.

Government handouts encourage people not to try.

They may never.

And to pull themselves out of -- 1000001 step at a time.

Like some giant drug pusher their government has lured them into dependency on a system that will maintain them and permanent poverty.

In every respect welfare is -- hard.

Governments like a giant drug -- -- that's actually right the welfare state.

Has done to black Americans what slavery could not have done.

The -- is Jim Crow laws and racism could not have done namely.

Break up the black family let us today.

Just slightly over 30% of black kids living two parent families.

Historically from eighteen -- these or up to about 1940s.

It's -- depending on the city 75.

To 90% of black kids -- in two parent families.

Illegitimacy rate is 70% among blacks where that is impressive and I history now some just a matter -- racial thing.

In Sweden is the mother of the welfare state.

And illegitimacy in Sweden is 54%.

And why it is a welfare state create illegitimacy.

Well because look.

If you.

If you subsidize any thing you're gonna get surpluses of it and if you tax something you won't get less if you did not get welfare.

Then people would decide up and go out and get a job I'm going to the Libor responsibly.

Homeowners get married before I -- children but that's if you really -- -- is the welfare state actually discouraged some men from.

Mirroring the woman -- -- would lose the Czech that's right the government has said to too many young women I am the father.

You -- and so the father black males have become disposable.

Black illegitimacy in that was 19%.

In 1940.

But it's skyrocketed during the great society and now it's over 7%.

Yeah it's over -- and that's a heck of a start in life that is where you to be born.

You don't know who -- where your father is that's not a really embraced.

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