Friday, January 26, 2007

Gary Becker on Harmful Effects of Minimum Wage Hikes

I just read a great article by Gary Becker on the harmful effects of minimum wage laws. The bipartisan fervor for a minimum wage increase "is a sad example of how interest-group politics and the public's ignorance of economics can combine to give us laws that manage to be both inefficient and inegalitarian" writes Becker. Becker goes on to explain, with convincing detail, how the minimum wage increases will harm those, the poor, that the laws are ostensibly intended to help.

Sadly, this Gary Becker is not the mayor of Racine. He is a Nobel winning economist. You can read his full article in todays Wall Street Journal.

3 comments:

Wade said...

That is a good one Denis, you had me going until I read your last sentence.

Denis Navratil said...

Hey Wade, we missed you on Tuesday.

Wade said...

I am boycotting Java Vino.
Just Kidding