h1

Just name one

March 3, 2014

Don Boudreaux puts up a good challenge at Cafe Hayek. (My emphasis.)

Minimum Wage, Maximum Folly – Again

Scott Sumner understandably wonders why exceedingly high rates of youth unemployment in economies with minimum-wage statutes are seldom explained as being at least in part a consequence of minimum-wage statutes, despite empirical evidence consistent with this explanation.

Pres. Obama insists that raising the hourly U.S. national minimum wage by 39.3 percent – from its current $7.25 to $10.10 by July 2016 – will have (as described by two members of Mr. Obama’s Council of Economic Advisors, Jason Furman and Betsey Stevenson) “little or no negative effect on employment.” Furman and Stevenson and the Administration dispute the Congressional Budget Office’s findings that this proposed hike in the minimum wage will put hundreds of thousands of low-skilled workers out of jobs. So here’s a challenge that I (and others) have posed before but believe to be sufficiently penetrating to pose again. This challenge, of course, is posed to supporters of this hike in the minimum wage: Name some other goods or services for which a government-mandated price hike of 39.3 percent will not cause fewer units of those goods and services to be purchased. Indeed, name even just one such good or service.

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