Supporters of raising the minimum cite poorly done studies by agenda driven “research” groups that allege to show that raising the minimum doesn’t harm employment. This defines common sense and is not supported by good academic research. The Law of Demand always works: the higher the price of anything, the less that will be taken, and this includes labor. forbes/sites/williamdunkelberg/2012/12/31/why-raising-the-minimum-wage-kills-jobs/ Firms cannot pay a worker more than the value the worker brings to the firm. Raising the minimum denies more low skilled workers the opportunity to get a job and receive “on the job” training. The impact of raising the minimum wage in 2009 on teen employment makes it very clear that this is especially harmful for young teen workers looking for their first opportunity to have a job. Raising the cost of labor raises the incentive for employers to find ways to use less labor. Most minimum wage earners are not in poverty, yet their employment opportunities are impaired as well as those who are. This is but one of the poorly designed policies that are created by politicians who have little or no understanding of how business works. They promise higher legislated wages or other benefits to constituents who don’t understand the true economic impact in order to gain votes. forbes/sites/williamdunkelberg/2012/12/31/why-raising-the-minimum-wage-kills-jobs/
Posted on: Tue, 19 Aug 2014 04:55:48 +0000
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