The headline should have said, “Reality Strikes Back,” because minimum wage laws having nothing to do with science. However, as with the outcome of certain scientific demonstrations, the outcomes of minimum wage laws are known before they’re enacted. From Paul Jacob at townhall.com:
It should shock no one: denying unskilled workers the opportunity to sell their labor for less ends up disadvantaging those unskilled workers against better-skilled ones.
That’s precisely what standard economic theory predicts. It’s what common sense should tell you.
And it’s what a major new study — with access to more data sets than ever before — says does happen. Minimum wage laws put workers at the lowest rung of the economic ladder out of work.
But, but . . . I hear the sputtering: minimum wage laws are nearly everywhere, and sure are popular.
Well, not every popular idea about policy is good…
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