layman_economics on Nostr: Many people support minimum wage laws because they believe this law protects ...
Many people support minimum wage laws because they believe this law protects low-skilled workers from being exploited by their employers.
I understand their good intentions.
But in reality, these laws do more harm to low-skilled workers than good.
Let’s say we’re starting a business, and the law says we have to pay our employees at least 16$ per hour, would we hire someone whose productivity is less than 16$ per hour?
Of course not!
Since many of the low-skilled workers have, by definition, little skills, they will become unemployed.
In other words, these laws make it hard for the people they want to ‘protect’ to find jobs!
If you want to protects low-skilled workers from being exploited by their employers, a better alternative is to get rid of these minimum wage laws and start implementing free market policies (e.g. less regulations, less taxes).
With free market policies, it’s a lot easier for people to start a business.
With businesses popping up everywhere, each low-skilled worker has more potential employers.
So, if an employer treats you badly, you can more easily quit your job and find another one.
In other words, with free market policies, it’s a lot more difficult for employers to exploit their employees!
#economics #minimumwage #economy #policy #law #government
I understand their good intentions.
But in reality, these laws do more harm to low-skilled workers than good.
Let’s say we’re starting a business, and the law says we have to pay our employees at least 16$ per hour, would we hire someone whose productivity is less than 16$ per hour?
Of course not!
Since many of the low-skilled workers have, by definition, little skills, they will become unemployed.
In other words, these laws make it hard for the people they want to ‘protect’ to find jobs!
If you want to protects low-skilled workers from being exploited by their employers, a better alternative is to get rid of these minimum wage laws and start implementing free market policies (e.g. less regulations, less taxes).
With free market policies, it’s a lot easier for people to start a business.
With businesses popping up everywhere, each low-skilled worker has more potential employers.
So, if an employer treats you badly, you can more easily quit your job and find another one.
In other words, with free market policies, it’s a lot more difficult for employers to exploit their employees!
#economics #minimumwage #economy #policy #law #government