Tuesday, February 13, 2007
Minimum Wage Follies
See this article from the Arizona Republic . It is fairly anecdotal, so I would take it with a grain of salt, but it does conform to what research and theory tell us. If you raise the wage floor, the least qualified workers will be let go. And sure enough, high school students, who are the lowest skilled minimum wage, legal workers, are the first to go. A good substitute for legal workers are illegal workers. Suffice it to say, the minimum wage debacle that is about to pass Congress will be more deleterious than beneficial for its intended targets, and it is likely that we the citizens of this country will pay the price Congress' economic illiteracy, as high schoolers in Arizona are now. It will get worse.