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Mike Connolly : How does a minimum wage requirement impact an economy? / Clear, concise arguments and answers from leading thinkers / Eristical.com
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Mike Connolly

Minimum wage laws are good politics, but lousy economics. Forcing companies to raise the wages for workers at the bottom rung of the economic ladder only encourages them to cut the number of jobs for those workers. If a company employs three people at $4 per hour, and the government increases the minimum wage to $6 per hour, the employer will simply cut the number of jobs from three to two. That might make life better for two of the three, but it makes the third unemployed, and now an economic drain on society rather than an economic contributor to it.

In the absence of a minimum wage, young and unskilled workers have an incentive to educate themselves, work hard, improve their skills, and increase their value to their employers. An artificially high minimum wage discourages all of the above.

Communications Director, Club For Growth, Mike Connolly