Listening to a podcast this morning that briefly talked about minimum wage laws, my mind drifted to a slightly different framing of the issue than I typically consider and wanted to jot down some quick thoughts for posterity. When considering minimum wage laws, I believe one should always reflect on the wisdom of Frederic Bastiat:
Possible effect 5: Fred gives up on his Pizza business, finds a 12$ job (since he is actually quite capable) and they end up with, effectively, a 12$ minimum wage, 3 unemployed islanders, and no pizza.
Possible effect 5: Fred gives up on his Pizza business, finds a 12$ job (since he is actually quite capable) and they end up with, effectively, a 12$ minimum wage, 3 unemployed islanders, and no pizza.
The real minimum wage is $0/hr, and the higher you raise the fake minimum wage, the more people will earn the real one.
As a small business owner that knows the effects of politicians meddling with capitalism, you are spot on.