Minimum wage & Unemployment. This is not a coincidence!

I found this on Truth, staring you in the face.

Minimum wage laws cause unemployment and higher prices. They harm exactly the people they are designed to help. If someone cannot produce something worth $7.25 an hour (or whatever the minimum wage), you do not help him by making it illegal for him to work.

To paraphrase Ron Paul: the goal of improving the standard of living for Americans is certainly a noble one, but if this could be accomplished simply by passing laws which require employers to pay more money to their employees, then what is the moral justification for stopping at $7.25? Why not raise the minimum wage to $8 or $10? or for that matter why not $15 or $20 or $100?

Clearly, if the minimum wage were $100, you could imagine businesses, large and small, restructuring their production methods to favor automation, and fewer, more highly skilled employees. You can also imagine prices rising, because these means of production are less efficient. A small increase in the minimum wage has exactly the same effect, though its impact isn’t clearly discernible as unemployment numbers get overwhelmed by other factors.

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