I really wanted to like Linda McMahon.
I wanted to like the Connecticut Senate Candidate even though I once sued her (I guess I actually sued the sleazy business she and her husband run) because one of her wrestlers beat me up. The wrestler claimed his boss Vince McMahon had told him to “teach Stossel a lesson” for doing a 20/20 story on how pro wrestling is faked. I learned my lesson: Don’t confront 280lb lunatics who work for the McMahons.
Anyway, I wanted to like Linda McMahon because she talks about fiscal responsibility and deregulation, and she’s running against a truly despicable lawyer parasite.
I liked her today when I read this headline:
Yea! McMahon is absolutely right. Of course Congress should lower, or better yet, eliminate the minimum wage. It kills jobs. This is barely controversial among serious economists. Even the NY Times sometimes understands that.
Look at the chart below tracking unemployment and raises in the minimum wage
FBN’s Charles Brady points out that:
“ For 10 years – from 1997 to 2007 the minimum wage held steady at $5.15 per hour. Then in 2007 it was raised to $5.85. It was increased again to $6.55 in 2008 and finally to $7.25 in 2009. So over the course of three years businesses, especially those that rely heavily on minimum-wage workers, saw their labor costs soar 41%. … Unless these business saw their revenues rise by a similar amount, this extra fixed cost came right out of profits or was offset by reduced hiring or job cuts.”
Of course, the recession played a big part, but the minimum wage discourages employers from giving the young and unskilled an opportunity.
So McMahon was right to say that government should “look at what mandates are being placed on businesses and can they afford them."
But then, the media jumped on that, and:
“her campaign staff abruptly shut down a press conference…"
McMahon praised the minimum wage:
"The minimum wage now in our country, I think we've set that and a lot of people have benefited from it”
… As a crush of reporters moved with McMahon through the business toward the candidate's SUV, McMahon said she didn't want to imply that the minimum wage should be eliminated altogether.
"Don't take away this morning that I'm saying that we should scrap minimum wage," she said. "That is clearly not my position."
What a wimp. If so-called Tea Party Republicans won’t advocate sensible economics, who will?