Debunking Statist Arguments: The Minimum Wage
The people of the "Occupy" movements certainly have their hearts in the right place. However, many of their brains are somewhere way off this planet. Though they tend to diagnose problems of corporatism well, their demands are often ultra-statist, unfortunately aligning quite often with what the Washington establishment wants. Indeed, in some cases, implementing the OWS demands would be disastrous. I'll be attempting to debunk these argument one at a time in a series of blog posts.
Argument: We need a living wage!
Raise the miminum wage to $20 per hour!
Answer: Raising the minimum wage would actually hurt the people that need help the most. What most people don't understand is that the wage somebody earns is not meant to be an arbitrary number set by government. Rather, it is supposed to represent the price of your skill. The price of your skill, then, is valued by supply and demand. Think of the argument people make about professional athletes -- it offers such a great example. Football, basketball, and baseball players make too much money, they say, and should receive much less. But is this necessarily true?
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