How Minimum Wage Actually Works Summed Up In EPIC Cartoon

minwage

The evidence on the minimum wage couldn’t be any more clear – but apparently you can lead a liberal to economics, but you can’t make him think.

Economists don’t agree on much, but there is a virtual consensus on the minimum wage.

In his widely used economics textbook, Harvard economist Greg Mankiw cites a poll on ten issues that economists have the most agreement on.


There was 79% agreement with the statement:

“A minimum wage increases unemployment among young and unskilled workers.”

A  survey in 2006 of PhD members of the American Economic Association found that 46.8% respondents wanted the minimum wage eliminated, 37.7% supported an increase, 14.3% wanted it kept at the current level, and 1.3% wanted it decrease.

So how to we communicate these economic facts to our liberal friends?

The cartoon below does just the trick:

MinWage

 


It’s a bit oversimplified, as it should specficy that it’s speaking of jobs that generate more/less than $15 an hour after non-labor expenses except interest and taxes are accounted for.

Liberals like to picture the minimum wage as a floor that rises everyone up, but there are always going to be a few people who get trapped under the floorboard.



Analytical Economist

About Analytical Economist

The Analytical Economist is a freelance financial, political, and economics writer. His work has appeared in a variety of publications, including National Review, the Foundation for Economic Education, Ludwig von Mises Institute, among many others.

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *