How High Should The Minimum Wage Be?

From Prager U. at UCLA:

We’ve seen these types of videos before which not only show how clueless people are when it comes to economics and running a business, but how when their ideas are challenged, there seems to be either a moment of the light bulb comes on, or they stamp their feet and say “because I say so!”

There is a really good, snarky comment made below the video on YouTube which reads:

From now on instead of sending poor countries money, we’ll just tell them to raise their minimum wage.

Strangely, although it doesn’t make sense on some levels, it makes sense on other levels.

Advocates of higher minimum wage say that increasing the minimum wage will help with the economy overall. That claim seems to be contradicted by studies which show that an increase in minimum wage leads to lower number of hours per worker, layoffs and higher prices – none of which are good for the economy. Tell poorer countries to raise the minimum wage and see if their economy flourishes!

People who believe that raising the minimum wage will help economies, production, etc. are free to test their theory in the market. We mean that seriously. Go out and start your own business. Set wages that you pay people as high as you think they should be and call that a “minimum wage” for your company. See how well that works and how long your company lasts.

When you are back out on the streets, there are other places you can go to to test your failed economic theories.

We hear that Venezuela has opportunities.

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