Trump was right when he said during the debates that wages are too high. He was referring to our comparative disadvantage as a nation with lower wages abroad.
A key reason wages are "too high" in the US is because the minimum wage sets the floor for wages too high to begin with. That's why Trump said he didn't want to see a minimum wage increase. But we could actually start to reverse this problem by reducing the minimum wage to $4.20 per hour, not raising it.
Currently the federal minimum wage is $7.25 per hour, almost 73% higher than it should be.
The minimum wage set by the Fair Labor Standards Act of 1938 set the minimum wage at $0.25 per hour. Indexed to the Consumer Price Index since then, the current level should be about $4.20 per hour, through 2014.
One terrible consequence of artificially high wages at the bottom of the scale is that average teenage employment in the United States has plummeted from its high in 1978 and 1979 at 8.1 million to 4.7 million in 2015.
As recently as 2006 teenage employment averaged 6.2 million, but now on average 1.5 million fewer teenagers work compared to 2006 after a fusillade of minimum wage increases were unleashed beginning in 2007 under George W. Bush.
Demographics are not to be faulted. Birth rates have held steady between 1977 and 1999 at 15.525 per 1000, so that people born between those years turned 16 between 1993 and 2015, providing a steady supply and a steady level of young labor.
So compared to peak teenage employment, 3.4 million fewer teenagers work today even as the federal minimum wage was hiked ELEVEN times:
From $2.30 in 1976
to $2.65 in 1978,
to $2.90 in 1979,
to $3.10 in 1980,
to $3.35 in 1981,
to $3.80 in 1990,
to $4.25 in 1991,
to $4.75 in 1996,
to $5.15 in 1997,
to $5.85 in 2007,
to $6.55 in 2008,
to $7.25 in 2009.
That's a 215% increase in the minimum wage since peak teenage employment, accompanied by a 42% decline in that employment. You get the picture. Increase the cost of labor, and you get less of it.
Teenage employment is critical to transmitting our values to the next generation of Americans by giving the young an opportunity to gain the work experience and habits they will need to get that first "real" job, and to learn the relationship between effort and enjoying the fruits of labor.
Unfortunately their teachers and parents have not been communicating this message in word nor in deed. The socialism of Bernie Sanders is all the rage at the schools even as the parents idly answer the siren song of minimum wage increases sung by Republicans and Democrats alike.
The only problem with all that is, eventually the kids will run out of the fruits of other people's labor, including their parents'.
