Minimum Wage Laws Equal Less JobsSubmitted by thenung on Tue, 02/19/2013 - 02:52
"With Obama's recent push for an increase in the minimum wage to $9/hour, it's important to look at the consequences of a minimum wage of any (economically relevant) amount. Unfortunately, when one looks at the situation from a logical, supply-and-demand point of view, it becomes obvious that the minimum wage is another example of a law backed by good intentions with unintended, harmful consequences.
Firstly, it's completely dishonest to claim that without the minimum wage, we'd all be starving and forced to live off six pennies a day. If a company posted a job for $0.25/hour, I can almost guarantee that they wouldn't get any applications. Labor is a market, and there's a balance. While workers may have to impress employers with their experience and education and such, employers also have to compete for workers. To attract workers to their business, they might offer competitive pay, good medical benefits, advancement opportunities, a good work environment, etc. In a free market, this balance between available jobs and workers is kept relatively stable. It's when the government involves itself through economic regulations like price (wage) controls that the market gets distorted and one group is put at a disadvantage to another."
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