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!
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.