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Friday, July 13, 2012

The Crippling Nature of Minimum-Wage Laws

In truth, there is only one way to regard a minimum-wage law: it is compulsory unemployment, period. The law says, it is illegal, and therefore criminal, for anyone to hire anyone else below the level of X dollars an hour. This means, plainly and simply, that a large number of free and voluntary wage contracts are now outlawed and hence that there will be a large amount of unemployment. Remember that the minimum-wage law provides no jobs; it only outlaws them; and outlawed jobs are the inevitable result.

Alternatively, minimum wages raise prices. Would good does it do Wal-Mart workers to make more money when prices also go up?

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