I am a libertarian. One thing I think people of all political stripes need to do is to start judging policy proposals by their outcomes and stop judging policy proposals based on their intentions. So you want minimum wage because a higher minimum wage will lower poverty? But is raising minimum wage the right way to achieve that goal?
Here are ten studies that provide some evidence that raising minimum wage does a poor job of lowering poverty:
See the thing with every policy is that it creates unintended consequences. If you tax gas, gas becomes more expensive and the price of food goes up, if you add zoning regulations it makes it harder to build and house prices go up, if you raise wages through legislation (even though we all want to make high wages) that raises the costs to businesses and they have to raise prices or reduce labour at the margin. This has the effect of helping specifically minimum wage workers but for people without a job making it harder to find one. In the long term prices will go up to make minimum wage feel like less than it used to, necessitating the need for constant minimum wage increases. Do you really want to be fighting the same fight all the time over minimum wage only to have it raised when it’s far too late and most people are already making more than the minimum wage? What a waste of political will.
IMO UBI is a great option, Milton Friedman was famously very pro-UBI, but also need to be sensible about what regulations and laws we are passing and use a science and evidence-based approach, not one that sounds good when you first hear it.
I am a libertarian. One thing I think people of all political stripes need to do is to start judging policy proposals by their outcomes and stop judging policy proposals based on their intentions. So you want minimum wage because a higher minimum wage will lower poverty? But is raising minimum wage the right way to achieve that goal?
Here are ten studies that provide some evidence that raising minimum wage does a poor job of lowering poverty:
1, 2,3,4,5,6,7,8,9,10
See the thing with every policy is that it creates unintended consequences. If you tax gas, gas becomes more expensive and the price of food goes up, if you add zoning regulations it makes it harder to build and house prices go up, if you raise wages through legislation (even though we all want to make high wages) that raises the costs to businesses and they have to raise prices or reduce labour at the margin. This has the effect of helping specifically minimum wage workers but for people without a job making it harder to find one. In the long term prices will go up to make minimum wage feel like less than it used to, necessitating the need for constant minimum wage increases. Do you really want to be fighting the same fight all the time over minimum wage only to have it raised when it’s far too late and most people are already making more than the minimum wage? What a waste of political will.
IMO UBI is a great option, Milton Friedman was famously very pro-UBI, but also need to be sensible about what regulations and laws we are passing and use a science and evidence-based approach, not one that sounds good when you first hear it.