The Minimum Wage Is Bad Economics

The law of demand is more powerful than the minimum wage law: when the price of anything, including labor, goes up, the quantity demanded goes down, other things constant. No one has ever disproven this economic law—and neither the President nor Congress can overturn it. The idea that raising the minimum wage will increase income confuses the price of labor (the wage rate) with labor income (wage rate x hours worked). If a worker loses her job or can’t find a job at the higher minimum wage, her income is zero . Proponents of the minimum wage argue that […]