Romney wrong on minimum wage

Diana Furchtgott-Roth:

With sky-high unemployment rates for teens (23 percent) and unskilled workers (14 percent), why does Gov. Mitt Romney support raising the minimum wage with the inflation rate? New jobs numbers come out Friday, and we can be sure that these two groups will still remain behind.

Between 2007 and 2009, the federal hourly minimum wage rose to $7.25 in three steps from the $5.15 rate that had prevailed for a decade. If the rate is indexed for inflation, it will rise every year.

Romney and others assume that if the minimum wage were gradually raised through indexing or other means, all workers would retain their jobs. But this is not the case.

It sounds compassionate to alleviate poverty by mandating that employers raise wages, but employers often replace low-skill workers with machines. Think self-checkout machines in supermarkets, or computerized call centers.

Or, do a thought experiment: Would you have your job if the minimum wage were $75 an hour? Probably not.

At its current level, the minimum wage disproportionately affects teens and low-skill workers, many of whom qualify only for entry-level slots.

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Since the Democrats last raised the minimum wage unemployment has shot up especially among black teens.  Allowing this to continue is not compassionate or conservative.   We should be looking for ways to replace the minimum wage and let the marketplace set the wage scale.