A couple of days ago, I quoted one of my favorite
economists in a Facebook status thusly:
“Avoiding long-term
poverty is not rocket science. First, graduate from
high school. Second, get married before you have children, and stay
married. Third, work at any kind of job, even one that starts out paying
the minimum wage. And, finally, avoid engaging in criminal behavior.”
My very bright but
contrarian son responded with this:
“I thought the
reason we graduated from high school, and then college was so we wouldn’t have
to work a minimum wage job.”
A few comments are
in order.
When the great
Walter E. Williams made these comments he was responding to how confounding
long-term poverty has been to big government liberal proscriptions. When
confronted with the largely ineffective “war on poverty” track record, liberals
always retreat to the explanation of how complicated the problem is and
therefore extraordinarily difficult to fix. Mr. Williams simply looks at the
poverty statistics and identifies the most common traits of poor people and
works the problems backward to great effect. Take me for example.
Thirty-one years
ago I took a job with Life of Virginia as an insurance salesman. They agreed to
pay me a salary of $350 a week. Every three months I had to produce an
increasing percentage of this amount or I would be unceremoniously canned. In
exchange for this $350, I was expected to labor a minimum of 60 hours a week.
Back in those days, the only way to get appointments was to endure marathon cold
calling phone sessions. Because this was 1981, no one had answering machines,
so you could only reach people at night. The numbers were always the same…100
dials, get 35 people on the phone, set one appointment. Needless to say, this
was brutal, gut-wrenching work. You try getting hung up on and cursed out for
three hours a night!
Now, if I divide my
salary by the number of hours I worked every week, I come up with an hourly
wage of $5.83. Allowing for inflation, it was a bit higher than minimum wage,
but not by much. Why would a recently college educated young man agree to such
an arrangement? Well, I had just gotten laid off by a company that went
bankrupt because of malfeasance by the owners, a company that owed me over
$5000 at the time. The fact was that I was desperate for a job. It never occurred
to me to lie around my apartment collecting unemployment for 99 weeks. The
degrading experience of applying for it had so traumatized me that after I
received my first and only unemployment check, I swore that I would dig ditches
before I ever cashed another one. But that’s just me.
The moral of this
story is that, the worst job I ever had at Life of Virginia morphed into a
career in the investment business that has propelled me into becoming a
business-owning member of the evil 1%. (actually, more like evil 2%, but who’s
counting?) This happy story, along with the fact that I got married and stayed
married, had my kids after the ceremony instead of before, and have largely
avoided criminal activity has helped me to be able to pay cash for my
contrarian son’s college education, proving Mr. Williams right.
One more thing, Mr.
Williams’ advice is how to avoid long
term poverty, not necessarily how to get
rich. This is not a distinction without a difference. Still, any list of
successful people who started their working life working for minimum wage would
fill a pretty large book. Besides, a job that “starts” at minimum wage doesn’t necessarily
stay there. Take the trash out at McDonalds and they’ll pay you $7.25 an hour. Show
up on time every day and smile when
you take out the trash and they’ll bump it to $8. You can’t get ahead in this
country by demand or by fiat, only by performance. You want to make more than
the minimum wage? Make yourself more valuable to the marketplace.
It really isn’t rocket
science.