Our latest Econ 101 video is a must watch. If you haven’t seen it yet, Orphe Divounguy succinctly explains the role of minimum wage laws in creating unemployment in this video titled, “The Job-Killing Impact of Minimum Wage Laws:”
Minimum wage laws seem like a good idea, but arbitrarily mandating a certain wage can have terrible consequences. Business are not charities, so if the minimum wage is set above the market level, this eliminates job opportunities – particularly for the less fortunate members of society. Since employees and employers should have freedom of contract, the right minimum wage is zero.
Our other videos in the Economics 101 series are available here.
