Sunday, July 27, 2008

Bad Law, Worse Timing

From the WSJ:

Repeated studies have shown that minimum-wage increases are more likely to slow job creation than reduce poverty. A large share of the costs of these mandates are borne by the same low-income families the wage hike is supposed to help. Employers inevitably pass wage increases onto consumers as higher prices for goods and services, which erodes the spending power of all consumers but especially the poor. Employers also respond by hiring fewer unskilled workers, a disproportionate number of whom are teenagers and minorities. (more)

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