By Patrick Carroll They say there’s two things you learn in a co-op program. What you love to do, and what you don’t love to do. In my co-op experience, I learned almost exclusively the latter. My first placement was particularly brutal. I was a freshman Chemical Engineering student and didn’t have much work experience, so just finding a job was difficult. It wasn’t until … [Read more...] about How the Minimum Wage Forced Me into an Unpaid Internship
Minimum Wage
Minimum Wage Hikes Kick in Across the Country—at the Worst Possible Time for Small Businesses
By Brad Polumbo 2020 was one of the worst years in modern American history for small businesses. And now, thanks to a wave of minimum wage legislation that kicked in on January 1, things are about to get even worse. Make no mistake: small business owners are already seriously hurting. When state and local governments responded to the outbreak of COVID-19 in the spring … [Read more...] about Minimum Wage Hikes Kick in Across the Country—at the Worst Possible Time for Small Businesses
Three Bad Arguments for the Minimum Wage
By Gor Mkrtchian The case for market wages is simple. If employers and employees voluntarily agree to a certain wage, then that exchange will necessarily be mutually beneficial, otherwise it wouldn’t have happened. Creating a minimum wage will simply disemploy the lowest-skilled among us, whose productivity is below the legal minimum wage. Why would a business hire a worker … [Read more...] about Three Bad Arguments for the Minimum Wage
The Case for Abolishing Minimum Wage Laws
By Antony Davies and James R. Harrigan Eighteen states impose minimum wages higher than the federal minimum of $7.25 an hour. Among the states, California’s $12 an hour minimum is currently the highest (the minimum wage in the District of Columbia is $13.25). States are free to set whatever minimum wage they think is appropriate. This latitude notwithstanding, the American … [Read more...] about The Case for Abolishing Minimum Wage Laws
This Cartoon Shows How the Minimum Wage Works
By Mark J. Perry The cartoon below illustrates an important, but overlooked fact about the minimum wage and labor markets: Workers compete against other workers, not against employers, for jobs and higher wages. The low-skilled worker below (ex-bus driver Otto Mann on the Simpsons) is willing to work for $8 an hour to help Morris “Moe” Szyslak clean his bar but loses that … [Read more...] about This Cartoon Shows How the Minimum Wage Works
The Minimum Wage Is a Complex Issue. We Should Treat It as Such
By Trace Mitchell Last week the House passed a bill that would increase the federal minimum wage to $15 an hour over the next five years. Proponents say it will put more money in the pockets of working-class people. Others worry that it will lead to a reduction in the number of jobs available to entry-level workers. A recent report issued by the CBO found that increasing … [Read more...] about The Minimum Wage Is a Complex Issue. We Should Treat It as Such
Lessons from Spain’s Minimum Wage Experiment
By Paul Boyce The impact of a higher minimum wage will depend on how much it is increased. For example, a new minimum wage of $20 will have a more significant effect than $10. Further, the impact can vary depending on how rapidly it is increased. Increasing the minimum wage to $20 over five years will have less of an impact than an increase in one year. It is because of such … [Read more...] about Lessons from Spain’s Minimum Wage Experiment
Support for $15 Minimum Wage Plummets When Americans Are Told Its Economic Impact
By Jon Miltimore Minimum wage laws, I’ve noted, are popular with the public. This no doubt explains why House Democrats passed a bill Thursday that would raise the federal minimum wage to $15 an hour. Yet the minimum wage’s apparent popularity might be political pyrite (fool’s gold). A newly published Business Insider survey found that support for the minimum wage … [Read more...] about Support for $15 Minimum Wage Plummets When Americans Are Told Its Economic Impact
4 Ways Employers Respond to Minimum Wage Laws (Besides Laying Off Workers)
By John Phelan Most of you will be familiar with a supply and demand graph. This shows a demand curve, which graphs the relationship between the price of something and the quantity demanded of that something, as well as a supply curve, which graphs the relationship between the price of something and the quantity supplied of that something. It is probably the most basic—and … [Read more...] about 4 Ways Employers Respond to Minimum Wage Laws (Besides Laying Off Workers)
Restaurant Chain Announces Bankruptcy, Says Minimum Wage Hikes a Key Factor
By Jon Militimore Restaurants Unlimited, a Seattle-based chain with restaurant locations in 47 US cities, announced on Sunday it was seeking Chapter 11 protection, citing “progressive” wage laws. The company, which has operated since the Lyndon Johnson Administration, said rising labor costs—part of a national trend of government-mandated minimum increases—were part of … [Read more...] about Restaurant Chain Announces Bankruptcy, Says Minimum Wage Hikes a Key Factor
Why the Minimum Wage Can’t Solve the Poverty Problem
By Paul Boyce If wages for those at the bottom are high, you may naturally expect low poverty rates. No matter how you define it, higher wages would most logically relieve poverty levels. This is also the argument made by the Economic Policy Institute (EPI). An increase in the minimum wage may very well reduce poverty in the short-term. However, there will be adjustments. … [Read more...] about Why the Minimum Wage Can’t Solve the Poverty Problem
The Hidden Costs of a $15 Per Hour Minimum Wage
By Art Carden It seems everyone wants to raise the minimum wage. On May 20, 2019, PBS reported that pretty much everyone seeking the Democratic presidential nomination wants to raise the federal minimum wage to $15 per hour. President Trump advocated a higher minimum wage during his 2016 campaign. The private sector has gotten into it as well, with Walmart CEO Doug McMillon … [Read more...] about The Hidden Costs of a $15 Per Hour Minimum Wage