The High Cost of Minimum Wages

6765Ben Wiegold writes in today’s Mises Daily:

In this vein, it is prudent to think of minimum wage statutes in the same manner that one thinks of price controls generally: if a given price is forced below the market rate, shortages will occur; if a price is forced above the market rate, unsold surpluses will accumulate. The nuisance of unemployment, then, is to be simply explained as a surplus of labor services, the natural result of minimum wage laws which force wage rates above the market price.

Insofar as concern is expressed for low-income workers — the ones whom minimum wage laws are intended to benefit — it seems rather arbitrary and unwarranted to not be concerned also about those that will lose their jobs.

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