Minimum Wage Scam

After employee representatives Bridget Martin and Jeff Turkus advocated a living wage during the minimum wage hearings, one must ask whose interest they are really looking after. It is very tempting to believe that such a law is in our best interest, and that we should honor these two men for being our heroes in shining armor.

Between 1996 and 2002, 82 cities and counties in the United States enacted living-wage laws. Such wages ranged from $7.00 to more than $13.00 an hour. Economist Jeffrey M. Perloff stated, " Consequently, these laws may lower the quantity of labor demanded for the employees of covered firms because uncovered firms (including businesses from nearby cities) can hire labor at lower wages."

Competition between different communities is exactly why the U.S. Congress imposed the federal minimum wage. Representatives from several states would loathe the fact that other states would have lower wages for the same type of work. Thus, a high-wage state would lose jobs to low-wage states. The late Murray Rothbard, an economist with Ludwig von Mises Institute, noted, “During the 1966 Congressional battle over a higher federal minimum wage, the late Senator Jacob Javits freely admitted that one of his main reasons for supporting the bill was to cripple the southern competitors of New York textile firms.”

Another economist, a Nobel laureate, the late Gunnar Myrdal, stated in his book, An American Dilemma, that the 1930’s minimum wage law had hurt African Americans the most. Since blacks were willing to work in conditions and for pay not favorable to most whites, employers ignored their racism and prejudice to employ black workers. As soon as the government forced wages up, employers had no incentive to ignore their bias. We should thank the government for encouraging discrimination with its intervention into the marketplace.

It seems clear to me that Mr. Martin and Mr. Turkus are looking after their own interests and not ours. We would be accused of the same if we tried to impose our minimum wage laws on countries with whom we compete. Do we care about their poor? Hell no. What we care about is that their low wages may take our jobs away from us one day. Using the same logic, is Mr. Martin and Mr. Turkus trying to get us to raise our wages so that less jobs would migrate from the mainland and Hawaii to American Samoa?

Who’s being immoral here?

Jobs don’t create themselves. Workers don’t create their own jobs either. Entrepreneurs, who organize everything, put up the capital and take the risk, create jobs. StarKist creates jobs. McDonalds creates jobs. Local and foreign businesses create jobs. Employee representatives and politicians do not.

The most moral way to set wages is through negotiation between employees (unions) and employers without state interference.

Celebrating One's Independence Day

Today, on July 4, 2005, many will be celebrating the birth of a country. Today, I ask that you celebrate the birth of the recognition and protection of the individual. Countries come and go, empires rise and fall, but on July 4, 1776, our forefathers enshrined individual rights in the Declaration of Independence. On July 4, 1776, government was instituted among Men, not above Men.

Tonight, pop off a firework in honor of yourself. If anyone asks why you are so self-serving, just say, “I ask not what my country can do for me, but I ask what I can do to take care of myself and my love ones so that the rest of country doesn’t have to.” Now that’s real independence.

Go out and enjoy it, celebrate it, be unashamed of it and fight to protect it.

Happy Birthday good old U.S. of A.

Hard Times

I’ve experienced one of the hardest times of my life a few days ago when I was talking to my brother about less employment opportunities in American Samoa due to increasing foreign competition. He is finding that it is becoming harder to find jobs in the restaurant industry seeing that immigrants are taking more of them up and foreign establishments are becoming increasingly competitive. It was hard for me to tell him that his pain and his struggle are necessary for him and our island country to become better.

I tried to use an analogy to explain to him why I believe that statement to be the truth. In American Samoa, not too many people know how to fish anymore or they don’t depend on fishing as much as in the past. Fishing was considered an expertise, and families and villages had tufuga in this capacity as well. Though our tufuga were not employed in the modern sense of the term, their value and worth to the community were continually chipped away by local grocery stores and imports. Some abandoned the practice all together.

As sad as this may seem, the implications of this so-called tragedy have improved our lives over the years. Even though families could have relied on members to provide fish free, they continued to find it more convenient to buy fish at retail stores. We rather give up money to buy fish than go fish on our own. We save our families time to do more important, more productive things. If we had passed laws banning imports or the sale of fish at stores, then obviously we would have more fishermen today and fewer teachers, cops, governors and the like.

It’s hard for people to do this, but we have to apply this logic to every job out there. If imports or foreigners find a way to provide products and services more cheaply, effectively and efficiently, then this saves Samoans time and money to improve in other areas. This is where protectionists come in and say, “We don’t have no resources or any more room to advance.” I’m glad these protectionists where not around when Thomas Edison invented the light bulb. I’m glad these protectionists where not around when someone invented silicon out of useless sand. I’m glad these protectionists were not around to whisper their rhetoric into the ears of our many great achievers; we may have less of them today.

Politicians love to use slogans such as, “The sky’s the limit,” or, “You can achieve anything you put your mind to,” all the while paying lip service to those truths. I believe in my brother and my Samoan people to do better and become better, and that was the only thing that was not hard for me to tell him.