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The War on Poverty

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    Economist Walter Williams discusses why the war on poverty has hampered many in the black community.

  • Duration 6:06
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Government programs lift minorities out of poverty.

When president Johnson declared a war on poverty he said compassionate government can conquer poverty.

Sounds -- made sense to me at the time.

But since then government has spent trillions of dollars on poverty programs your dollars and how's that working for us.

The poverty level didn't go down it's been stuck -- about 12% of the population for forty years.

Why well one reason is that government handouts encourage people to stay dependent there's money in.

We would have known this 25 years ago had policy makers bothered to read a book titled the state against blacks.

The author obscure economists said.

Poverty programs destroy the natural mechanisms.

That have always allowed poor people to lift themselves out of poverty.

Public TV either ran a program based on the book called good intentions.

-- -- -- -- optimism for black people.

The civil rights movement was about to achieve its greatest triumphs.

Federal and state governments for an immense energy and well over a trillion dollars into the task of relieving poverty and promoting a call today.

The results -- complete failure.

For many -- in the lower end of the economic spectrum for the future looks more hopeless today than it did twenty years ago.

More hopeless today after trillions of your dollars and poverty programs 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 that's good that's a that's a nice assumption to make but he didn't turn out that way there's a huge segment of the black population.

For whom.

Upward mobility.

Is elusive.

And and I believe it's elusive because of welfare -- it's because of government.

Because of the help -- -- them and you have written a new book that touches on this titled race and economics and one of the points you make in this book is that the minimum wage which overwhelmingly Americans support.

You say.

Hurts people yes and -- it will.

Look let's not look at the intentions behind -- and wage -- that most for the most part the intentions at least United States are very good.

But we have to ask what are the effects -- wage.

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

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

Will -- employer pay pay that amount and higher person who makes who who can only at three afford Ellsworth value per hour.

That is the minimum wage discriminates against the employment of low skilled people so fewer of them get higher than 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 non economists almost everyone says a living wage is essential.

I think -- minimum wage is necessary just to keep from exploiting workers and -- -- 'cause people any money these days.

People always need money.

In 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 of his job because I have -- costly coming up to me ask me for John Snow actually given the jobs and our.

And I wish I could see if there were room.

Lower minimum wage I could have maybe two or three more.

-- -- -- story like this.

Hydro I don't know get a nearly thirty years ago and so -- most of my friends.

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

Today and generals like I grew up -- 70%.

Of black children can 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%.

And why would there be a racial difference -- America the minimal way home you'd think -- -- all teenage.

Well as I said.

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

But -- young people not only share those handicaps in general.

But many of them get a fraud and fraudulent education in the public school system so if there's a law all that discriminates against low skilled people it's gonna have a doubly negative 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 state changed because of the minimum wage law.

That is the minimum wage -- rose got higher and higher and higher.

And employers.

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

And 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.

No people -- because for the most what they have low skills if you could do with the minimum wage why seven point five at sort of cheap we should raise it to toy box and -- -- -- -- the fact that.

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