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Econ 101: The Minimum Wage Kills Jobs

Posted By Conn Carroll On June 16, 2010 @ 5:00 pm In Economics | Comments Disabled

Last week, George Mason University economics professor Daniel Klein wrote a Wall Street Journal op-ed [1] summarizing an study he did for Econ Journal Watch: “Who is better informed about the policy choices facing the country—liberals, conservatives or libertarians? According to a Zogby International survey that I write about in the May issue of Econ Journal Watch, the answer is unequivocal: The left flunks Econ 101.”

Some of the questions Klein et al asked included: “1) Mandatory licensing of professional services increases the prices of those services (unenlightened answer: disagree). 2) Overall, the standard of living is higher today than it was 30 years ago (unenlightened answer: disagree). 3) Rent control leads to housing shortages (unenlightened answer: disagree). 4) A company with the largest market share is a monopoly (unenlightened answer: agree). 5) Third World workers working for American companies overseas are being exploited (unenlightened answer: agree). 6) Free trade leads to unemployment (unenlightened answer: agree). 7) Minimum wage laws raise unemployment (unenlightened answer: disagree).”

If you have any liberal friends who still have trouble wrapping their head around the fact that minimum wage laws increase unemployment, send them the video to the right from the Center for Freedom and Prosperity Foundation video titled: The Job-Killing Impact of Minimum Wage Laws [2]. You can read Heritage’s studies on the minimum wage, here [3].

Article printed from The Foundry: Conservative Policy News from The Heritage Foundation: http://blog.heritage.org

URL to article: http://blog.heritage.org/2010/06/16/econ-101-the-minimum-wage-kills-jobs/

URLs in this post:

[1] Wall Street Journal op-ed: http://online.wsj.com/article/SB10001424052748703561604575282190930932412.html?mod=WSJ_Opinion_LEADTop

[2] The Job-Killing Impact of Minimum Wage Laws: http://www.youtube.com/watch?v=zMMN3UIQmEk

[3] here: http://www.heritage.org/Search.aspx?query=%22minimum+wage%22&section=|

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