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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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    3. 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..
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    6. Neumark, David & Wascher, William, 1995. "Minimum Wage Effects on Employment and School Enrollment," Journal of Business & Economic Statistics, American Statistical Association, vol. 13(2), pages 199-206, April.
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    8. 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.
    9. David Neumark & William Wascher, 1992. "Employment Effects of Minimum and Subminimum Wages: Panel Data on State Minimum Wage Laws," ILR Review, Cornell University, ILR School, vol. 46(1), pages 55-81, October.
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