The latest marketing dodge by the Left is to start calling, not for higher minimum wages, but for a “living wage,” thereby cleverly evoking images of poor single mums struggling to feed themselves and their kids on low pay. No one should work for a wage they can’t live on is a pretty good battlecry. Except that there are lots of people, in fact the vast majority, who earn the minimum wage and don’t live on it at all. The bulk of minimum wage earners are secondary earners in families above the low-income cutoff (LICO). And how many single parents with dependents try to get by on a single minimum wage income? Just over 2% of all people earning the minimum wage.
In my Globe column for the ROB of April 1st, therefore, I try my own rebranding campaign for the minimum/living wage. Here are the three I thought best. To the extent it represents government forcing businesses to pay more for labour than the going price, it is a tax on jobs. To the extent it forces up prices at providers of low-cost goods and services to the poor, it is higher prices. And finally to the extent that the minimum wage is actually the entry wage for young workers living at home looking for their first job, and therefore every hike in the minimum wage makes fewer such jobs available, it is a youth penalty.