
Originally Posted by
Suppressed Poet
It never made sense to me the left’s argument for minimum wage, but it highlights their lack of knowledge in basic economics. All minimum wage does is remove options from people who need it the most. Same goes for all price fixing including things like rent caps.
Which of the following situations are worse for someone who can only find employment in a low/no skill job:
A) A voluntary transaction for labor at a low wage. (With opportunity to gain new skills and increase their value in the labor market.)
B) Unemployment.
That’s all that minimum wage does…it prices out the lowest valued jobs out of existence. Why? Because no business is going to operate at a loss. If the employee and job are not worth the imposed minimum wage, a business isn’t going to increase wages. Said job opportunity ceases to exist.