Ep. 4 - The Truth About Minimum Wage

2018-07-26

We are going to tackle the minimum wage issue with facts, figures, economic laws, and logic rather than, what we usually get - emotional calls for the wage rate increase using illogical arguments that are in direct opposition to economic law. I want to start with a quote by Thomas Sowell from his epic book, Basic Economics that really lays the foundation for this discussion. On page 237 he said: “By the simplest and most basic economics, a price artificially raised tends to cause more to be supplied and less to be demanded than when p...

I want to start with a quote by Thomas Sowell from his epic book, Basic Economics that really lays the foundation for this discussion. On page 237 he said:

“By the simplest and most basic economics, a price artificially raised tends to cause more to be supplied and less to be demanded than when prices are left to be determined by supply and demand in a free market. The result is a surplus, whether the price that is set artificially high is that of farm produce or labor.”

Show Notes:

The Real Minimum Wage is $0.00 - New York Times, January 14, 1987
2014 Congressional Budget Office Study
Harvard Business Review study, March 2018
eattle minimum wage
Minimum wage is bad for low-skilled workers – Daniel J. Mitchell
Economics in One Lesson chapter on minimum wage - Henry Hazlett
Real World Examples of How the Minimum Wage Destroys Jobs - Daniel J. Mitchell
Part II of Contra Krugman: The Book - Minimum Wage
Minimum Wage Hikes Are Killing Jobs in California's Poorest Communities, Study Says
Congress Seeks to Boost the Minimum Wage and Teen Joblessness

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