” On the one hand, this is so elementary, it’s hard to believe anyone argues with it. But when you’re dealing with ideological true believers, you know they will argue withanything you say if it doesn’t line up with the faith. So don’t assume you’ve won the argument just because you point this out: Raising the minimum wage will worsen unemployment because, plain and simple, it raises the cost of labor.
Not only that, but it raises by statute the cost of the least productive laborers out there. There’s a reason minimum wage earners get the minimum. Their contribution represents minimal value. An employer who decides to hire such a person is accepting lack of experience, lack of training and lack of maturity, and is deciding to invest some time developing the worker and getting whatever minimal contribution they can make until they see if the investment pays off in the person’s improvement. Usually you’re not talking about people trying to support a family. Usually you’re talking about a 16-year-old kid. If you make it even more expensive than it already is to hire such people, businesses simply will not do it.”
- The real tragedy is that many Americans earn $0.00 per hour and live in poverty, because of the minimum wage law (aei-ideas.org)
- Obama’s Minimum Wage Plan (cato.org)
- Boehner Says No To Minimum Wage Increase (addictinginfo.org)
- Obama, business groups differ on minimum wage plan (news.yahoo.com)