acton.org — The problem with the minimum-wage solution is that it leads to negative consequences that are equal to?or sometimes worse than?the problem that the policy sought to remedy. Studies over the past forty years indicate that a legally determined minimum wage leads to fewer available jobs, especially for the very people the legislation wants to help.
Jan 11, 2007 View in Crawl 4
Closed AccountJan 11, 2007
not only that, but it leads to high unemployment as well. if the cost for keeping workers goes up, then the company will simply have to lay off workers in order to keep operating costs as low as possible. the people to go are usually the ones who arent that great at their jobs, dont have a lot of experience or skills, and they are usually the ones who get stuck without jobs because no one else will take them on either.
pjflynn84Jan 11, 2007
The other part of the this is that only 13 million Americans work at minimum wage (varies from state to state) and 40% of them are teenagers. Also a large majority of them get raises within 6 months. If people are living on a minimum wage, God help them as they are making $7,000 a year below the poverty line at $7.25 an hour. If you want to see an increase in people's real incomes, give tax breaks to small businesses so they can afford higher wages. And if they pay higher wages, so will the Wal-Marts. Its basic economics. This whole idea of legislating prosperity is a joke and is more or less a political ploy.
siszamJan 11, 2007
Inaccurate. Republican propaganda. You people will do anything and say anything to keep people down and rob them of dignity.
jwaddellJan 11, 2007
rockforever, the minimum wage is horrible policy (because it kills jobs for the least skilled), but it does not create inflation. Expansion of the money supply creates inflation, period. Let's not use erroneous economic arguments, they only backfire in the end. Read Friedman, Mises, Rothbard, and on and on. Thanks.