1480745_10152073979388588_746600988_nBy Tom Quiner

The minimum wage issue is an easy one.
If you force an employer to pay someone more than they’re worth, that employer will hire fewer people. Worse, he may let employees go.
The minimum wage is a cruel piece of legislation because it deprives young workers of entry-level employment opportunities. Evidence at the state level supports my claim.
There is a direct correlation between a higher minimum wage and higher unemployment rates. Back in May of 2009, the five states with the lowest unemployment rates had a state MW lower than the federal wage.
But five of the six states with the highest unemployment rates had a higher MW wage than the feds, suggesting there is a correlation between artificially high wages and high unemployment.
I’m not sure that the meme at the top of this article is accurate. But it points out that low skill jobs may not be worth ten or fifteen bucks per hour.
Let the marketplace decide, not the busy bodies in Washington.

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  1. oarubio on December 9, 2013 at 12:18 pm

    Tom, you are correct about the fallout. I had a WordPress article of my own earlier in the year. For a recent year, 8 of the states with the 10 highest min. wage had unemployment rates above the national average. Looking back over the last 40 years, it wasn’t so much having increases in minimum wage as it was bigger wage shocks to the system because the min. wage had been neglected for years.
    The economy can handle reasonable periodic increases, but not significant jumps or we get, as you said, a backlash against the very people it was intended to help. — Tony

    • quinersdiner on December 9, 2013 at 12:21 pm

      Great to hear from you, Tony. Thanks for the feedback.

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