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 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).

==Empirical evidence from the 2009 recession==

==Empirical evidence from the 2009 recession==

The 2009 recession gave a compelling picture of how an excessive minimum wage can exacerbate the employment climate.  None of the five states with the lowest unemployment rates in May 2009, all below 5.5%, had a minimum wage higher than the federal minimum wage of $6.55. Five of of the six states with the highest unemployment rates, all above 11.2%, had minimum wages above the federal minimum wage. [[Oregon]], with a minimum wage of $8.40, had an unemployment rate of 12.4%. Generally, states with a higher minimum wage than the federal minimum wage had unemployment rates that were higher than states that did not have a higher minimum wage.<ref>[http://www.bls.gov/lau/ Bureau of Labor Statistics]</ref><ref>[http://www.dol.gov/esa/minwage/america.htm Department of Labor]</ref>

The 2009 recession gave a compelling picture of how an excessive minimum wage can exacerbate the employment climate.  None of the five states with the lowest unemployment rates in May 2009, all below 5.5%, had a minimum wage higher than the federal minimum wage of $6.55. Five of the six states with the highest unemployment rates, all above 11.2%, had minimum wages above the federal minimum wage. [[Oregon]], with a minimum wage of $8.40, had an unemployment rate of 12.4%. Generally, states with a higher minimum wage than the federal minimum wage had unemployment rates that were higher than states that did not have a higher minimum wage.<ref>[http://www.bls.gov/lau/ Bureau of Labor Statistics]</ref><ref>[http://www.dol.gov/esa/minwage/america.htm Department of Labor]</ref>

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