President Biden wants to raise the minimum wage (MW) to $15. Many politicians, labor unions, and others support this policy. The non-partisan Congressional Budget Office, however, predicted that raising the MW will cost 1.4 million jobs. Economists already knew this, of course. By a simple application of the law and supply and demand we can predict that raising the MW will create unemployment: if employers are forced to raise their salaries they will hire less workers.
The Minimum wage and symbolic behavior
The Minimum wage and symbolic behavior
The Minimum wage and symbolic behavior
President Biden wants to raise the minimum wage (MW) to $15. Many politicians, labor unions, and others support this policy. The non-partisan Congressional Budget Office, however, predicted that raising the MW will cost 1.4 million jobs. Economists already knew this, of course. By a simple application of the law and supply and demand we can predict that raising the MW will create unemployment: if employers are forced to raise their salaries they will hire less workers.