Changes

*The Employment Policies Institute, a business-friendly non-profit based in Washington, D.C., argues that “economic research has shown time and again that increasing the minimum wage destroys jobs for low-skilled workers while doing little to address poverty.” [http://blogs.forbes.com/moneybuilder/2010/02/24/seniors-pushing-young-adults-out-of-the-workforce/]

*The Employment Policies Institute, a business-friendly non-profit based in Washington, D.C., argues that “economic research has shown time and again that increasing the minimum wage destroys jobs for low-skilled workers while doing little to address poverty.” [http://blogs.forbes.com/moneybuilder/2010/02/24/seniors-pushing-young-adults-out-of-the-workforce/]

More than 90% of countries -- most of which have unsuccessful economies -- have minimum wage laws.  The minimum wage in the United states was most recently raised to $7.25/hr, on July 24, 2009. At this rate, a worker can earn at least $15,080.00 for the year based on a 40-hour work week, and more if he works overtime.  The minimum wage is higher in many states, such as [[New Jersey]], due to state minimum wage laws. The national minimum wage laws are based in the the powers vested in Congress by the [[Commerce Clause]].  

More than 90% of countries—most of which have unsuccessful economies—have minimum wage laws.  The minimum wage in the United states was most recently raised to $7.25/hr, on July 24, 2009. At this rate, a worker can earn at least $15,080.00 for the year based on a 40-hour work week, and more if he works overtime.  The minimum wage is higher in many states, such as [[New Jersey]], due to state minimum wage laws. The national minimum wage laws are based in the the powers vested in Congress by the [[Commerce Clause]].  

Like all market forces, wages are payed based on interactions between the supply curve (how much workers are willing to supply a particular type of labor at a certain wage) and a demand curve (how many workers of a particular type a firm is willing to hire at a particular wage). Wages are typically set at [[equilibrium]]. If a minimum wage is imposed that is above this equilibrium, it leads to structural [[unemployment]]. If a minimum wage is set below the equilibrium point, it is unlikely to affect that job's wage unless a complement or substitute job's equilibrium wage is less than the minimum wage (causing ripple effects throughout the related markets).

Like all market forces, wages are payed based on interactions between the supply curve (how much workers are willing to supply a particular type of labor at a certain wage) and a demand curve (how many workers of a particular type a firm is willing to hire at a particular wage). Wages are typically set at [[equilibrium]]. If a minimum wage is imposed that is above this equilibrium, it leads to structural [[unemployment]]. If a minimum wage is set below the equilibrium point, it is unlikely to affect that job's wage unless a complement or substitute job's equilibrium wage is less than the minimum wage (causing ripple effects throughout the related markets).

:I think the government solution to a problem is usually as bad as the problem and very often makes the problem worse. Take, for example, the minimum wage, which has the effect of making the poor people at the bottom of the wage scale—those it was designed to help—worse off than before.

:I think the government solution to a problem is usually as bad as the problem and very often makes the problem worse. Take, for example, the minimum wage, which has the effect of making the poor people at the bottom of the wage scale—those it was designed to help—worse off than before.

: If you really want to get a feeling about the minimum wage, there’s nothing more instructive than going to the Congressional documents to read the proposals to raise the minimum wage and see who testifies. You very seldom find poor people testifying in favor of the minimum wage. The people who do are those who receive or pay wages much higher than the minimum. Frequently Northern textile manufacturers. John F. Kennedy, when he was in Congress, said explicitly that he was testifying in favor of a rise in the minimum wage because he wanted protection for the New England textile industry against competition from the so-called cheap labor of the South. But now look at it from the point of that cheap labor. If a high minimum wage makes unfeasible an otherwise feasible venture in the South, are people in the South benefited or harmed? Clearly harmed, because jobs otherwise available for them are no longer available. A minimum-wage law is, in reality, a law that makes it illegal for an employer to hire a person with limited skills.<ref> [http://jeepers1.wordpress.com/2010/02/21/a-1973-interview-with-milton-friedman-playboy-magazine/ 1973 interview with [[Milton Friedman]]]</ref>

: If you really want to get a feeling about the minimum wage, there’s nothing more instructive than going to the Congressional documents to read the proposals to raise the minimum wage and see who testifies. You very seldom find poor people testifying in favor of the minimum wage. The people who do are those who receive or pay wages much higher than the minimum. Frequently Northern textile manufacturers. John F. Kennedy, when he was in Congress, said explicitly that he was testifying in favor of a rise in the minimum wage because he wanted protection for the New England textile industry against competition from the so-called cheap labor of the South. But now look at it from the point of that cheap labor. If a high minimum wage makes unfeasible an otherwise feasible venture in the South, are people in the South benefited or harmed? Clearly harmed, because jobs otherwise available for them are no longer available. A minimum-wage law is, in reality, a law that makes it illegal for an employer to hire a person with limited skills.<ref>[http://jeepers1.wordpress.com/2010/02/21/a-1973-interview-with-milton-friedman-playboy-magazine/ 1973 interview with [[Milton Friedman]]]</ref>

==Political views==

==Political views==

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==See Also==

==See also==

* [[Living wage]]

* [[Living wage]]

* [[Maximum wage]]

* [[Maximum wage]]

[[Category:Economics]][[Category:Political Terms]][[Category:Law]]

[[Category:Economics]][[Category:Political Terms]][[Category:Law]]