Thursday, September 12, 2013

The Minimum Wage Delusion, And The Death Of Common Sense

Forbes has a great article on why minimum wages do the opposite of their intentions.
The minimum wage is not a panacea for poverty. Indeed, Neumark, Schweitzer, and Wascher examine the evidence and conclude that “the net effect of higher minimum wages is . . . to increase the proportion of families that are poor and near-poor” (Journal of Human Resources, 2005). Thus, the minimum wage tends to increase, not decrease, the poverty rate.
Unions LOVE higher minimum wages.  It means less competition for them!

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