Frank LaGrotta – 2/3/06

This page was last updated on February 6, 2006.

Wage hike reasonable; State Rep. Frank LaGrotta (D-10); Beaver County Times; February 3, 2006.

In his last letter, Mr. LaGrotta sucked up to his boss, Mike Veon.

Other critiques of Mr. LaGrotta’s position on the minimum wage are here and here.

The difference between a minimum wage and the economic value of a job is nothing less than stealth welfare. Just as the government check and “tax credit” forms of welfare, the unearned portion of the minimum wage is a tax. Other than hair-on-fire liberals like Mr. LaGrotta, when was the last time you heard anyone claim tax increases benefit the economy or increase jobs?

Below is a detailed critique of the subject letter.

“In response to Sunday’s letter to the editor ‘Minimum wage hike a ploy.’

“It’s annoying to read another letter that’s nothing more than recycled right-wing rhetoric from a conservative website. I had to chuckle, though, because the author appeared to have no idea what he’s talking about.”

[RWC] It’s nice to see Mr. LaGrotta still likes to demean voters who disagree with him. I got a kick out of the “no idea what he’s talking about” comment. You’ll see what I mean below.

“Here are the facts: Democrats in the state House are desperately trying to raise our minimum wage for two reasons.”

[RWC] Warning. If you head is prone to exploding when you read unadulterated BS, I suggest you wrap your head in duct tape before proceeding.

“First, raising our minimum wage will strengthen Pennsylvania’s economy.”

[RWC] Does Mr. LaGrotta honestly expect us to believe artificially higher wages will help an economy? Maybe we misjudged Mr. LaGrotta’s position on the 2005 payjacking. Perhaps he thought by voting for a ridiculously high pay raise for himself he was strengthening PA’s economy. <g>

“In the 17 states that already have raised their minimum wage above the federal level, consumer demand has been stimulated by increasing workers’ purchasing power. It’s simple: people who have more money buy more things. History has proved time and again that a strong economy can only be built from its foundation up by giving working men and women better wages and working conditions.”

[RWC] While it’s true “people who have more money buy more things,” that’s only true if they have more real buying power and prices have not risen. This is something people like Mr. LaGrotta tend to gloss over. Does Mr. LaGrotta expect businesses not to raise prices if they have to pay employees more?

“Moreover, in states that have raised their minimum wage, worker morale and productivity has increased, while training and recruiting costs, as well as employee turnover and absenteeism, all have decreased.”

[RWC] Productivity is defined in terms of output vs. input. The greater the output per unit of input, the greater the productivity. How do you improve productivity by paying more for input (labor, raw materials, et cetera) than it’s worth?

How does paying more than a job is worth reduce “training and recruiting costs?” In general, what training is required for a minimum wage job? I worked several minimum wage jobs as a teenager and none required training. Mr. LaGrotta also has a consistency problem with the recruiting comment. If you recall, Mr. LaGrotta and his fellow travelers constantly tell us we have a terrible economy worse than any time since the Great Depression. If this were true, and it’s not, wouldn’t businesses have little problem recruiting employees? Inconsistency is a byproduct of lying. FYI, the current (January 2006) unemployment rate is 4.7%, below the averages for the 1970s, 1980s, and 1990s.

“Let me repeat this fact: in the states with higher minimum wage, employers have saved money.”

[RWC] If raising wages above the economic value of a job reaps such dividends, why don’t businesses just raise their wages? If this is true, why do employers oppose the minimum wage? Are they stupid?

Earlier this year I asked Mr. LaGrotta to cite the sources of his “facts.” He declined.

Let’s remember Mr. LaGrotta allegedly graduated from high school, and Notre Dame with B.A. and M.A. degrees. Are we to believe Mr. LaGrotta never took one economics course during this time or learned absolutely nothing from any economics courses he did take? Of course, you don’t need formal economics education to know Mr. LaGrotta’s positions defy commonsense, economic principles, and logic.

“However, there is a second and more compelling reason why we must raise Pennsylvania’s minimum wage now: It is the right thing to do.”

[RWC] Translation: “Even if every ‘fact’ I cite in this letter is a lie, let’s raise the minimum wage anyway.”

“Pennsylvanians earning a minimum wage for a 40-hour work week gross $10,712 annually, a figure dangerously close to the U.S. poverty level and one well below a living wage in 2006.

“And these are not just teenagers and summer workers, as critics falsely charge. According to the state Department of Labor statistics, minimum wage earners primarily are adults over the age of 19 who are making significant contributions to their family income.”

[RWC] Regarding, “And these are not just teenagers and summer workers, as critics falsely charge,” you won’t find that claim in my argument because it wouldn’t make any difference even if it were true. While it’s true “minimum wage earners primarily are adults over the age of 19,” again it doesn’t matter. Bad economics is bad economics, period, and jacking up the minimum wage helps no one.

Regarding “who are making significant contributions to their family income,” I believe Mr. LaGrotta is freelancing. If you review the BLS report Mr. LaGrotta cites, “Characteristics of Minimum Wage Workers: 2004,” you’ll see it presents no data to support Mr. LaGrotta’s claim. Again, though, it wouldn’t make any difference even if it were true.

“It’s time to do what’s right, both for Pennsylvania employers and workers. It is time to raise Pennsylvania’s minimum wage!”

[RWC] Partisan he is, Mr. LaGrotta will never recognize “what’s right” as long as it differs from his economic, political, and social views of the world.