"Here are four new items on the minimum wage law government mandated price floor that guarantee reduced employment opportunities for low skilled and limited-experience workers, especially minorities.
1. Last year Larry Reed wrote an article titled
“How the Minimum Wage Folks Think [Badly], And What Economists Think of That,” here’s an excerpt:
If you’re a lay person and are wondering how a good economist sees the way the minimum wage advocate thinks, the following will explain the matter.
The good economists can’t help but conclude that minimum wage believers are guilty of one or more of the following errors:
1. They believe in political law (edicts, orders, and mandates) but not economic law (supply and demand and the market-clearing function of prices and wages);
2. They think that every job and every person is automatically worth at least as much as Congress decrees to be the minimum;
3. They believe that even if a person or a job is really worth less than the minimum, employers will still hire them and happily eat the loss;
4. They often have no clue that they’re unwitting accomplices of organized labor, which favors a minimum wage hike as a way to disadvantage its lower-cost or less-skilled or non-union competition;
5. They usually oppose raising the minimum to $100/hour but can’t figure out why the reasoning that leads them to that conclusion applies to any other increase too;
6. They never tell you that European OECD countries that don’t have a minimum wage have an average unemployment rate about half the average jobless rate of European OECD countries that do (see table above for OECD data in 2014)."
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