SALON

Saturday, May 18, 2013 7:30 PM UTC

The conservative case for raising the minimum wage

A leading conservative argues that immigration reform and a boost in wages need to go hand in hand

By

Topics: Labor, Great Recession, Minimum wage, Editor's Picks, ,

The conservative case for raising the minimum wage (Credit: AP)

Congress is currently considering bipartisan legislation providing an amnesty for America’s 11 million illegal immigrants, probably combined with extra visas for skilled workers and an agricultural guestworker program. But principled liberals and conservatives should both demand that any immigration reform proposal also include a sharp rise in the federal minimum wage.

The reason is simple. Any increase in the supply or job mobility of willing workers will tend to benefit Capital at the expense of Labor, stifling any growth in working-class wages, especially given our high unemployment rates. The last 40 years have seen a huge increase in immigration, and it is hardly coincidental that median American wages have been stagnant or declining throughout most of this same period. A large boost in the minimum wage, perhaps to $12 an hour or more, would be the best means of reversing our current economic race to the bottom.

American businesses can certainly afford to provide better pay given that corporate profits have reached an all-time high while wages have fallen to their lowest share of national GDP in history. Furthermore, the overwhelming majority of our lowest paying jobs are in the non-tradeable service sector, rendering them immune from foreign competition. A major factor keeping wages low has been the large annual influx of new immigrant labor, which steadily reduces the bargaining power of existing workers, especially including all previous immigrants. Only the power of the federal government can halt this downward spiral into national impoverishment for most Americans by setting a reasonable floor on wages.

Under the amnesty proposals being discussed, millions of workers at the bottom of the economic ladder would be able to regularize their status and become secure enough to seek better and higher-paying employment. But if nothing is done to improve the wages of their current jobs, these would remain unattractive to legal U.S. residents and act as a magnetic lure for new waves of impoverished border-crossers, eager to gain an initial foothold in the American economy. This exact process occurred following President Ronald Reagan’s amnesty of 3 million illegal immigrants in 1986, and new arrivals might hope to benefit from some future amnesty.

Politicians may promise better border security and tighter employer safeguards, but these same promises were made and broken in 1986. Given powerful economic incentives for both business owner and illegal worker, laws are often circumvented or ignored.

The best means of discouraging employers from hiring illegal workers is to make their jobs sufficiently attractive to draw legal applicants, and this can only be done by raising pay to reasonable levels. So long as federal law requires all competing businesses to raise wages in unison, much of this cost could be covered by a small one-time rise in prices. Since the working-poor would see their annual incomes rise by 30 or 40 percent, they could easily afford to pay an extra dime for a McDonalds hamburger, while such higher prices would be completely negligible to America’s more affluent elements.

Critics of a rise in the minimum wage argue that jobs would be destroyed, and in some cases they are probably correct. But many of those threatened jobs are exactly the ones that should have no place in an affluent, developed society like the United States, which should not attempt to compete with Mexico or India in low-wage industries. The only reason that American sweatshops survive is that they rely upon an undocumented labor force, and eliminating such jobs is a feature not a bug.

Our federal and local governments currently spend vast sums of money subsidizing the social benefits and living standards of our working-poor, including mailing them checks via the refundable Earned Income Tax Credit (EITC). These expenditures constitute an enormous corporate welfare program in which businesses obtain the full value of their low-paid workforce while shifting much of the cost onto the general taxpayer, a classic example of economic special interests privatizing their profits and socializing their costs. Private sector employers should cover the expenses of their own workers rather than force middle-class taxpayers to pay the tab.

The political elites of both the Democratic and Republican parties have united behind immigration reform. Ordinary Americans, Democrat and Republican, immigrant and native-born, should demand that a large rise in the federal minimum wage be included as part of any package deal.

Ron Unz

Ron Unz, a Silicon Valley software developer, is publisher of The American Conservative More Ron Unz.

You Might Also Like

More Related Stories

Featured Slide Shows

7 motorist-friendly camping sites

close X
  • Share on Twitter
  • Share on Facebook
  • Thumbnails
  • Fullscreen
  • 1 of 9

Sponsored Post

  • White River National Forest via Lower Crystal Lake, Colorado
    For those OK with the mainstream, White River Forest welcomes more than 10 million visitors a year, making it the most-visited recreation forest in the nation. But don’t hate it for being beautiful; it’s got substance, too. The forest boasts 8 wilderness areas, 2,500 miles of trail, 1,900 miles of winding service system roads, and 12 ski resorts (should your snow shredders fit the trunk space). If ice isn’t your thing: take the tire-friendly Flat Tops Trail Scenic Byway — 82 miles connecting the towns of Meeker and Yampa, half of which is unpaved for you road rebels.
    fs.usda.gov/whiteriveryou


    Image credit: Getty

  • Chattahoochee-Oconee National Forest via Noontootla Creek, Georgia
    Boasting 10 wildernesses, 430 miles of trail and 1,367 miles of trout-filled stream, this Georgia forest is hailed as a camper’s paradise. Try driving the Ridge and Valley Scenic Byway, which saw Civil War battles fought. If the tall peaks make your engine tremble, opt for the relatively flat Oconee National Forest, which offers smaller hills and an easy trail to the ghost town of Scull Shoals. Scaredy-cats can opt for John’s Mountain Overlook, which leads to twin waterfalls for the sensitive sightseer in you.
    fs.usda.gov/conf


    Image credit: flickr/chattoconeenf

  • Nordhouse Dunes Wilderness Area via Green Road, Michigan
    The only national forest in Lower Michigan, the Huron-Mainstee spans nearly 1 million acres of public land. Outside the requisite lush habitat for fish and wildlife on display, the Nordhouse Dunes Wilderness Area is among the biggest hooks for visitors: offering beach camping with shores pounded by big, cerulean surf. Splash in some rum and you just might think you were in the Caribbean.
    fs.usda.gov/hmnf


    Image credit: umich.edu

  • Canaan Mountain via Backcountry Canaan Loop Road, West Virginia
    A favorite hailed by outdoorsman and author Johnny Molloy as some of the best high-country car camping sites anywhere in the country, you don’t have to go far to get away. Travel 20 miles west of Dolly Sods (among the busiest in the East) to find the Canaan Backcountry (for more quiet and peace). Those willing to leave the car for a bit and foot it would be remiss to neglect day-hiking the White Rim Rocks, Table Rock Overlook, or the rim at Blackwater River Gorge.
    fs.usda.gov/mnf


    Image credit: Getty

  • Mt. Rogers NRA via Hurricane Creek Road, North Carolina
    Most know it as the highest country they’ll see from North Carolina to New Hampshire. What they may not know? Car campers can get the same grand experience for less hassle. Drop the 50-pound backpacks and take the highway to the high country by stopping anywhere on the twisting (hence the name) Hurricane Road for access to a 15-mile loop that boasts the best of the grassy balds. It’s the road less travelled, and the high one, at that.
    fs.usda.gov/gwj


    Image credit: wikipedia.org

  • Long Key State Park via the Overseas Highway, Florida
    Hiking can get old; sometimes you’d rather paddle. For a weekend getaway of the coastal variety and quieter version of the Florida Keys that’s no less luxe, stick your head in the sand (and ocean, if snorkeling’s your thing) at any of Long Key’s 60 sites. Canoes and kayaks are aplenty, as are the hot showers and electric power source amenities. Think of it as the getaway from the typical getaway.
    floridastateparks.org/longkey/default.cfm


    Image credit: floridastateparks.org

  • Grand Canyon National Park via Crazy Jug Point, Arizona
    You didn’t think we’d neglect one of the world’s most famous national parks, did you? Nor would we dare lead you astray with one of the busiest parts of the park. With the Colorado River still within view of this cliff-edge site, Crazy Jug is a carside camper’s refuge from the troops of tourists. Find easy access to the Bill Hall Trail less than a mile from camp, and descend to get a peek at the volcanic Mt. Trumbull. (Fear not: It’s about as active as your typical lazy Sunday in front of the tube, if not more peaceful.)
    fs.usda.gov/kaibab


    Image credit: flickr/Irish Typepad

  • As the go-to (weekend) getaway car for fiscally conscious field trips with friends, the 2013 MINI Convertible is your campground racer of choice, allowing you and up to three of your co-pilots to take in all the beauty of nature high and low. And with a fuel efficiency that won’t leave you in the latter, you won’t have to worry about being left stranded (or awkwardly asking to go halfsies on gas expenses).


    Image credit: miniusa.com

  • Recent Slide Shows

  • Share on Twitter
  • Share on Facebook
  • Thumbnails
  • Fullscreen
  • 1 of 9

Related Videos

Comments

 19 Comments

Comment Preview

Your name will appear as username ( settings | log out )

You may use these HTML tags and attributes: <a href=""> <b> <em> <strong> <i> <blockquote>

follow salon

Most Read

Popular on Reddit

links from salon.com

From Around the Web

Presented by Scribol
listener_new_rect The Listener: "The Joker": Laughing at life's deepest sorrows