Most news reports involving the government-mandated minimum wage tend to tout purported benefits and ignore the inherent problems associated with an artificial price floor.
At least the News & Observer points to a potential downside of the latest increase in today’s front-page story:
But with businesses already struggling with the economic downturn, it
could actually intensify the pain. Employers could cut jobs, put off
hiring, reduce hours or raise prices to contend with the wage increase
amid the recession.?
In the video clip below, Roy Cordato explains why the minimum wage ? in good economic times or bad ? invariably hurts the lowest-skilled workers.
