States Have the Right to Raise the Minimum Wage. Just Be Prepared for The Consequences.

Today, Yahoo! Finance posted an interview with me where I discussed the difficult time young people are having finding work. While I agree states and municipalities have the right to raise the minimum wage, people need to understand the consequences of government mandated wage hikes. Minimum wage laws at the state or municipal level rather than the federal level makes sense as different regions have different economic concerns. Unfortunately, the consequences of artificial wage hikes include higher prices and fewer entry level jobs which principally hurt the young Americans who need those jobs, particularly minorities. Real economic growth increases the demand for labor naturally, thus increasing wages. Government mandating increased wages without underlying economic growth cannot produce the same benefits as genuine economic growth and will actually hurt many of those the mandate purports to help.

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