Bandow on a Minimum Wage

quotes economics minimum wage

15 Jan 2014

Doug Bandow writes:

So long as business is not charity, companies are not likely to pay more than employees can produce. Forcing up wages will not only reduce overall employment, but shift jobs toward higher-skilled workers who are more productive and thus warrant higher pay — which explains strong union support for ever higher minimums. The minimum wage also has encouraged mechanization, since it makes economic sense for companies to invest more in machines to spend less on labor.