Poll: Should we repeal minimum wage laws?

President Obama proposed a $9 federal minimum wage in his State of the Union address. Here is why that is a terrible idea. It will increase unemployment and the cost of the minimum wage will be passed onto consumers in the form of higher prices. Julie Borowski gives us her thoughts on the issue in her latest video:

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Food for thought. In this political climate, if we oppose minimum wage rules, how do we go about changing over 60 years of public policy? What are some creative ways we could scale back these laws in a proactive way? Surely it’s a start to simply dare to propose the repeal of these laws? (Some additional thoughts on the economics of minimum wage from Robert Murphy)

(Cato Institute) The federal government has imposed a minimum wage since 1938, and nearly all the states impose their own minimum wages. These laws prevent employers from paying wages below a mandated level. While the aim is to help workers, decades of economic research show that minimum wages usually end up harming workers and the broader economy. Minimum wages particularly stifle job opportunities for low-skill workers, youth, and minorities, which are the groups that policymakers are often trying to help with these policies.

There is no “free lunch” when the government mandates a minimum wage. If the government requires that certain workers be paid higher wages, then businesses make adjustments to pay for the added costs, such as reducing hiring, cutting employee work hours, reducing benefits, and charging higher prices…