Many American states and Canadian provinces are introducing higher minimum wages, responding to union and anti-poverty protesters calling for a greater living wage. The minds behind this concept say it’ll help those impoverished to do better in life. It’s complete and utter nonsense of course.
Economist Walter Block does another excellent job in the video below explaining the economics behind the minimum wage. If my productivity is $5 per hour but the government has mandated an employer to pay me $7 then they’ll lose out on $2 per hour and eventually do any number of things, such as fire me, eliminate my position, automate or simply do not expand the business.
It’s simple: the minimum wage hurts the uneducated, the unskilled, youth and immigrants.
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