36 Chambers – The Legendary Journeys: Execution to the max!

February 22, 2013

Another Day, Another Minimum Wage Hike

Filed under: Economics — Kevin Feasel @ 6:00 pm

Bob Murphy does the yeoman’s work on this.  First, he compares states with above-national minimum wage laws to those states in which the national minimum wage rate is the predominating amount.  The result comports fairly well with standard economic theory.  Bob also takes time to notice an inconvenient shift in personal belief and that yes, folks, demand curves do slope downward.

Stefan Karlsson notes that an increase in the US minimum wage to $9 per hour probably wouldn’t drive that many people out of work, based on industry averages.  The counter-argument is that it does affect one group of people very strongly:  teenagers.  Teenagers have benefited recently in hiring (after being locked out for a couple of years), and this would reverse those recent gains.

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