We hear time and time again from progressives, calls to increase the minimum wage to at least $15 an hour.I have discussed the negative effects on minimum wage laws both on the show and in weekly columns. However, I have no degree in economics, I merely chose to study economics for fun and to learn. That being said my word doesn’t hold as much weight as someone like Milton Friedman. Below is a brief clip of Uncle Milton discussing minimum wage laws and the effect they have on the poor.
While watching this keep in mind that, wages are the price businesses pay for labor. Labor has a market like any other good, and it’s prices should be competitive, like any other good. The price of labor should correlate to the quality of labor in very much the same as quality plays a role in the price of goods in other markets. More skilled or higher quality workers are worth more than low skill workers.