Tags: Barack Obama | Steve Malzberg Show | economics | minimum wage | raise | jobs

WSJ's Stephen Moore: Obama Would Flunk My Economics Course

Thursday, 08 May 2014 07:08 PM

The Obama administration's skewed logic on a minimum wage hike would not even rate in a basic economics class, according to Stephen Moore, chief economist for The Heritage Foundation.

"If my students wrote a paper saying it's a good thing to raise the minimum wage and it's not going to destroy jobs, they would flunk my class," Moore told "The Steve Malzberg Show" on Newmax TV.

"This is 'Basic Economics 100.' If you make something more expensive like labor, businesses are going to want less of it.

"For those of you who had 'Economics 100,' you know the first rule [is] … when something gets more expensive, people want less of it and you're going to price a lot of workers out of the job market."

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One of President Barack Obama’s leading agenda items is hiking the federal minimum wage from $7.25 an hour to $10.10 an hour. Republicans oppose the increase.

Moore, who is also an editorial board member at The Wall Street Journal, said it might have been impossible for him to have achieved what he has if he had not started off as a low-wage earner.

"My first job was $2.35 an hour, it was a minimum wage job," he explained.

"If they had a $10 dollar an hour minimum wage back then, I never would've had that first job and I wouldn't be talking to you … right now.''

Moore is stunned that Obama appears to doubling down on failed green energy policies while shunning the Keystone XL pipeline project, which would create much-needed jobs.

"We’ve got to get this word out that there's this incredible double standard … We should be building Keystone,,' he said.

"My God we're talking about 10,000 jobs and those are jobs that would pay $80,000, $90,000, $100,000 dollars a year. We should be doing this — there's no reason not to."

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