The Minimum Wage Myth
Posted by: Peter Brombergs UnBlog,
on 08 Jan 2012 |
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In a free market, demand is a function of price: the higher the price, the lower the demand. These rules apply equally to both prices and wages. When employers evaluate their labor and capital needs, cost is a primary factor. When the cost of hiring low-skilled workers moves higher, jobs are lost. Despite this, minimum wage hikes, like the ones recently set to take effect, are always seen and reported as an act of governmental benevolence. Before bringing on another worker, an employer...