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The Economics Behind an Increase in Minimum Wage

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    American Majority Action Campus Director Celia Bigelow on the impact of a $9/hr minimum wage.

  • Duration 4:37
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-- Obama proposed raising the minimum wage in his state of the union message.

725.

An -- the federal level now to nine dollars and out.

Seen -- below the American majority Akron campus director.

Joins us now here in new he'll welcome realty and fair man this is why young people voted for President Obama.

They think that now being given something a wage raised just like.

Vote for that that's why this.

We'll we'll absolutely but it's funny how liberals always disregard.

Our its -- considered as a disregarding.

Science -- and there this regarding science.

In this case they're disregarding economic science because.

It -- -- proven over and -- again that raising the minimum wage well also raise unemployment rate.

And especially among young people it has been proven that raising the minimum wage.

It increases unemployment among young people disproportionately.

Because if businesses can't afford to hire young people.

At this rate.

When they're inexperienced.

You know halls.

How can you expect people to support -- family on minimum wage of 725.

-- you ultimately.

-- office I think -- -- Seoul explains its very well that people who are making minimum wage.

Arts support are generally supporting it -- right he's written about this many times saying that people are making the minimum wage.

Aren't supporting a family and this is exactly kids young people.

Are generally the people that are taking lower wages especially -- diet and myself had to work through college I was a lifeguard throughout college and high school.

Trying to pay my -- and pay my bills.

And it.

-- -- -- -- -- -- There's another aspect that it is that he and by the way I think everyone's missed an entire point -- -- -- -- union -- its not about economics is not distribution -- this redistribution.

Of the -- of accountability but.

When the president talked about raising -- 24%.

From 2000 on 24% when the actual median -- -- actually gone down some and a half percent since then.

It's really about doing the right thing it's not even about economics what he's saying -- people particularly young people those.

I'm a nice guy on the parent guidance other people don't like you forget about whether the numbers add up isn't really what young people like it's while they feel like how -- this -- and lots of.

He's on my mind -- So my client one that's reaching out to young people where concern of those nearly four per cent increase in the minimum wage this guy like me who anybody got a global that doesn't like alright Alice.

-- -- -- -- But what it OK the other side of the story is you raise the minimum wage and you put young people out of what you won't have a job right want -- -- -- that skittish on young -- that's harsh.

I noticed that is how much you go and until -- young treatments like.

You know -- we can't raise -- wages because it just means you're off you're gonna got a job that is a harsh and negative message -- -- Ottawa.

Right but you have to make educate them moral case for free enterprise at that point -- -- make great moral case.

For free market.

And allowing the free markets to -- active.

Won't create more jobs and more jobs that young people contain -- -- -- it's destroying these I could read the literature on this a minimum wage hike.

There's a leftist operation out of Washington and they come out in -- in the in the areas which have a high minimum wage.

Unemployment.

Is Lola.

And the standard of living is -- Higher minimum wage low unemployment -- it has been tried they say that is in miracle evidence that raising the minimum wage is a good thing for employ episodes it hasn't.

Like I said before Thomas Seoul explains -- -- -- because he has personal experience that that's back in the forties when they were raising the minimum wage issue.

I keep up with inflation.

He said that black youth unemployment back when he was working it was actually lower than Caucasian youth unemployment.

Because and that is because.

More jobs are available for young people when you keep wages low because we are inexperienced.

And that.

And that's economics and makes economic acted exactly they'll attend second it's also -- this is the government also from the LAPD and that is that our minimum wage is much lower.

In the minimum wage has -- in most of all countries throughout the world.

But the chicken and egg scenario and I look at a guy that what the youth unemployment is overseeing right it is very all of our 28%.

It is in more all.

And it's gonna we're gonna see increasing here at seventy point 6% -- I think.

On the value lady vol -- -- him his job well done young -- -- -- everyone and thank you very much indeed present.