The View From 1776
Thursday, February 14, 2013
Econ 101 - Higher Price Means Lower Demand
President Obama called for a higher minimum wage in his State of The Union address. That sounds good to the great majority of people, who don’t understand even the basics of economics, but it will harm the people whom he intends to help.
Raising the minimum wage always has decreased hiring for entry level jobs. Labor unions and other maggots feeding in the socialist cesspool strongly support higher minimum wage laws on the assumption that they will push up all wages.
But if businesses can’t make profits with higher wage costs, they will reduce output, which means fewer jobs, or will raise prices, which negates the effect of higher minimum wages.
Read Raise the Minimum Wage and Get Minimum Jobs, posted on the Fiscal Times website.