October 26, 1977

Government Adopts Employment 'Triage'

Incredibly, the U.S. government has adopted "triage" as an employment policy.

Triage is a hard-boiled military decision process whereby wounded soldiers are sorted into three groups for medical care - those that can be saved with immediate attention, those that can wait, and those that probably can not be saved.  Limited first aid is given in order of priority.

The new minimum wage law enacted by Congress and sent to President Jimmy Carter last week is ruthless economic triage.

The minimum wage is to go up from $2.30 an hour to $2.65 on Jan. 1, then to $2.90 in 1979, to $3.10 in 1980, and to $3.35 in 1981.

Theoretically those in lower paying jobs have their standard of living boosted by the simple process of presidential signature.  It appears so easy, one wonders why this pleasant little exercise is not performed more often?

Yet, the piper will be paid.  As in the past, the new wage costs will ripple upward through the entire economy imposing inflationary burdens that will trigger more business failures and joblessness.

Secretary of Labor Ray Marshall, in a rare burst of candor, testified before the Senate that the new minimum wage hike will wipe out at least 90,000 jobs.  Not to worry, however.  Marshall says the jobs will be replaced "eventually" by growth in the economy - a brave statement in the face of shaky economic conditions.

With his callous admission, the labor secretary underlines a priority policy that excludes under trained workers, small businesses, racial minorities, the welfare poor and thousands of marginal enterprises.

Triage, of course, does result in greater benefit to the survivors - in this case highly skilled workers, big business, big labor and those enterprises supplying critical goods and services.

The moral dilemma involved is two-fold:

• Does government have the right to play God?
• Do we have the right to encourage sacrifice of others?

The average citizen does not understand the larger issues of minimum wage.  He sees only the compassionate appearance of a gain without cost to him.  The officials of government are either just as ignorant, or know full well the stakes and are willing to make inhuman decisions.

The advantages of minimum wage increases by decree are well publicized - immediate cash, a spurt in the economy, a grateful electorate.

Not so well known are the side effects - increased debt, higher interest rates, inflation, unemployment.

It is an insidious trap.  It is human nature to choose optimistic leaders, and it is their nature to promise us our wishes.  In lieu of a national catastrophe, no one appreciates a prophet who prescribes blood, sweat and tears.  The belief in attainment of Utopia is as old as man.  It continues unabated even though the path of history is littered with uncountable attempts.

Economic triage is a new attempt.  Who can say it won't work?

Little noted studies indicate that hikes in minimum wages by redistribution of wealth, rather than by increased production, does result in some net improvement despite the horrendous penalty of inflation.

It has been estimated - who knows how accurately?  - that a 5 percent arbitrary increase in the minimum wage boosts inflation 1 percent, debt 1 percent, unemployment 1 percent and welfare 1 percent.  This leaves 1 percent improvement in the over all standard of living.

These figures impress me as a basket of mixed fruit.  The general conclusion, however still stands.  There is a small gain at a large cost.

Is it a valid trade off?

Unemployment hovers at 7 percent despite our best effort.  For blacks it is twice this, and for young blacks a staggering 40 percent.  Discouragingly the upcoming joblessness resulting from the new minimum wage hike will strike hardest at blacks.

As small businesses - most directly affected by minimum wage laws - struggle for existence they will replace marginal workers with labor saving machinery.  Ultimately unemployment filters down to the unskilled who must become permanent welfare wards of the state.  Our welfare rolls already are the highest in our history and are destined to swell in the next four years.

It is interesting to note that as the ranks of the jobless and welfare grow the need for skilled help increases.

Newspaper publishers have their own barometer of economic conditions that the experts in Washington, D.  C., ought to watch also - the help-wanted advertising index based on the volume of job classifieds in 51 major newspapers.  In August it hit 122, up 1 point from July and 8 points from June, and this in the summer months when the unemployment index rises as graduates seek work.

Government experts can rationalize all they want to, but it doesn't make sense to perpetuate a situation that simultaneously creates unemployment and a labor shortage.

A nation is comprised of citizens of varying talent and ability.  Every person has a right to a job and opportunity to achieve - regardless of his place in the national triage order.

Author: Lindsey Williams