By Liberty Report Staff
Walter Block eloquently explains:
The minimum wage does not require any employee to be hired. It mandates, only, that if he is taken on, then a lower bound on wages is applied. It is thus an unemployment law. It implies that low skilled workers will not get jobs. Suppose a worker’s productivity is $7 per hour, while the law requires a payment of $10. If a firm takes on such a person, it will lose $3 per hour.
There isn't a person or business out there that is going to purposefully lose money.
But why stop at $10/hr....or even $15/hr. as many on the Left desire?
Suppose it were raised to $100 per hour. Virtually none of us are worth that amount of money. Will this change in law help you? Posit that your productivity is only $60 per hour. That means, anyone hiring you at that wage will lose $40 per hour. If they do, they will soon be visited by bankruptcy.
And yet, the Left continues to demagogue this issue. They harm the very people they say that they're helping.
Over and over, they claim to be "Giving Americans A Raise."
Of course, they're doing no such thing:
The minimum wage is not a floor under wages, one that boosts them as the amount required by law increases. Rather, it is like a hurdle over which you have to jump in order to get a job in the first place and keep it.
When the minimum wage is raised, businesses must adjust their practices so that they can stay profitable and stay in business. They fire people, give extra jobs to the people that stay on, they automate....etc.
The minimum wage outlaws jobs. It's a generator for unemployment.