Minimum Wage, Maximum Nonsense, Dominick Armentano

Recently published in Washington Times, and currently at the Independent Institute, Wednesday, October 9, 2013, “Minimum Wage, Maximum Nonsense”

Excerpts:

…Question: What likely happens when we increase the price of beer, vacation rentals, books, newspapers or almost anything, while holding other variables constant?  Answer:  Fewer units of beer, vacation rentals, books or newspapers are sold in the marketplace.  In economic theory, that’s called the ‘law of demand’ in operation ; at higher prices fewer units of some particular good or service are purchased.

The law of demand operates in all market, including and especially labor markets.

Minimum-wage laws always decrease employment opportunities and always interfere with free choice and the freedom of contract.  They are supported by politicians seeking votes and by labor unions anxious to cripple nonunion competitors.  They are also inherently discriminatory since they hurt only workers on the lowest rung of the employment ladder.

 

 

 

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