A legislative increase in the minimum wage above the market‐clearing rate can increase real incomes for the relatively few who directly benefit, but will also decrease real incomes (owing to higher prices caused by the wage‐cost increase) for all others, which will have its greatest negative impact on the poor. A minimum wage also unfairly excludes potential workers (mostly young and inexperienced) who have not yet learned the necessary job skills to be sufficiently productive to cover the cost of the legally mandated wage.
If the price of domestically produced blueberries rises owing to U.S. government labor restrictions, more will be imported. Ask yourself: Would America be better off importing most of its blueberries or allowing temporary, seasonal farm laborers to come to the United States to pick the crop and then return home, which would allow more blueberries to be produced in America? (Note: Free trade is best because it maximizes consumer well‐being, real incomes and long‐run job creation. However, if the government restricts the supply of labor by regulating wages or by other means, it artificially puts American producers at a disadvantage.)
Surveys of seasonal farmworkers show that many of them want to come to the United States for only a few months each year to earn extra income and then return home. However, U.S. immigration law makes it very difficult for most foreign workers to come here to work only when they are needed and then go home. The result is that they become “illegal immigrants” even though they do not wish to reside permanently in this country.
There is a very clear‐thinking lady in Colorado, Helen Krieble, who has a solution for the problem that has obtained widespread political support, but not yet from the Obama administration. The Krieble plan (known as the Red Card Solution) puts those who merely want to work in the United States temporarily on a different track from those immigrants who are seeking citizenship. After the government certifies a need for certain types of temporary workers, those who wish to apply would go through a background check and then would be issued a card with a computer chip, allowing them legally to go back and forth from the U.S. to their home country. Employers would enter the card into a database to see if the worker was eligible for the work being offered and in compliance with the rules. The cost of the program would be borne by the workers and employers in the system. It would reduce the number of illegal immigrants, increase national security by giving the government more information about foreign workers in this country and add to U.S. growth by enabling the production of goods (primarily farm products) and services that would not otherwise be produced here.
Much damage is done by those in government who fail to think clearly about the consequences of minimum‐wage legislation, guest workers, as well as thousands of other things. (A short, entertaining and informative video “Hotnomics: Raising Minimum Wage” is available on the websites of The Washington Times and of the Center for Freedom and Prosperity Foundation.)