Do minimum wage laws help low-skilled workers? No. Workers are thrown out of work if they cannot produce more than the minimum wage stipulates. If the minimum wage is $15/hour and a worker can only produce $13/hour worth of goods, they will not be hired since no profit-seeking employer would employ someone at a loss.
Not only have their ideas failed on their terms, they have backfired, creating more lawlessness than before.
California’s minimum wage is set to rise to $15 an hour by 2022.
“Nothing is so permanent as a temporary government program.” — Milton Friedman
Unions leverage special government-granted powers (e.g., unique exemptions from antitrust laws) allowing current employees to prevent competition from others willing to do the same work for less.
What do we learn if immigrants lower the wages of American high school dropouts? That we should restrict immigration? No. We shouldn’t. First, if immigrants reduce the wages of high school dropouts, it sends a very clear message: don’t drop out of high school. Indeed, this is how people have responded to competitive pressure from […]
In this video professor Don Boudreaux responds directly to commentator Robert Reich on the topic of wages, particularly the claim that middle class wages have stagnated in recent decades.
Bernie Sanders sure gets a lot of air time out of his class warfare rhetoric. Common arguments from him and his supports lead less knowledgeable people to believe that the middle class is at risk of an ever more exploitative wealthy elite. But is that true? Let’s take a look at just one of those […]