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A Case Against The Minimum Wage

Author

Listed:
  • John Paloglou

    (Loyola University New Orleans)

  • Walter E. Block

    (Loyola University New Orleans)

Abstract

The minimum wage law is a snare and a delusion. All too many people think it is the be all and end all of economic welfare. At no particular cost, except that for a legislative enactment, peoples’ wages can magically increase, with no negative repercussions, such as unemployment. Not so, not so. We demonstrate that this law does not serve as a rising floor, increasing wages on its upward path. Rather, it constitutes a barrier in terms of productivity that workers must overcome if they are to have a job, and the higher it is the harder it is to leap over.

Suggested Citation

  • John Paloglou & Walter E. Block, 2021. "A Case Against The Minimum Wage," Romanian Economic Business Review, Romanian-American University, vol. 16(3), pages 28-37, September.
    • Handle: RePEc:rau:journl:v:16:y:2021:i:3:p:28-37
    as

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    File URL: http://www.rebe.rau.ro/RePEc/rau/journl/FA21/REBE-FA21-A3.pdf
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    References listed on IDEAS

    as
    1. Card, David & Krueger, Alan B, 1994. "Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania," American Economic Review, American Economic Association, vol. 84(4), pages 772-793, September.
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    4. David Card & Alan B. Krueger, 1997. "A Reanalysis of the Effect of the New Jersey Minimum Wage Increase on the Fast-Food Industry with Representative Payroll Data," Working Papers 772, Princeton University, Department of Economics, Industrial Relations Section..
    5. Richard V. Burkhauser and T. Aldrich Finnegan, 1993. "The Economics of Minimum Wage Legislation Revisited," Cato Journal, Cato Journal, Cato Institute, vol. 13(1), pages 123-129, Spring/Su.
    6. William Wascher & David Neumark, 2000. "Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania: Comment," American Economic Review, American Economic Association, vol. 90(5), pages 1362-1396, December.
    7. Daniel B. Klein & Stewart Dompe, 2007. "Reasons for Supporting the Minimum Wage: Asking Signatories of the "Raise the Minimum Wage" Statement," Econ Journal Watch, Econ Journal Watch, vol. 4(1), pages 125-167, January.
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    Full references (including those not matched with items on IDEAS)

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