In this video from the Center for Freedom and Prosperity, another of Dan Mitchell‘s former interns, Orphe Divounguy, gives us a lesson in how rising minimum wages, while seemingly good for the worker, actually kill job opportunities:
He makes several good points:
- For workers with no real skills, for example, teenagers just entering the job market, a high minimum wage makes them not worth what the employer is required to pay them.
- Minimum wages disproportionately hurt minorities, who often come from poor environments. Even if they’re willing to work to learn skill and prove themselves, the high minimum wage locks them out of the market.
- A minimum wage makes some sense as a floor if it’s beneath the prevailing market wage, but a minimum wage higher than that inevitably leads to higher unemployment as the cost of labor gets beyond what an employer can afford.
- Businesses aren’t charities. If a worker costs more than the revenue he generates, the employer won’t hire him.
I can’t imagine we’ll ever see a rollback or elimination of the minimum wage, however. Then again, these are not normal times and, with so many people unemployed, perhaps enough people can be convinced.