Minimum wage increases mean less job benefits

Published June 2, 2018 4:00am ET



As we all know, there’s considerable controversy over minimum wage increases. On the one side are people like me insisting that basic economics works — people buy less of more expensive things. On the other side are those who insist that there’s something special about labor, that basic economics doesn’t apply. Because, you know, reasons, or whatever.

One way of sorting through this is to look at what happens when the minimum wage increases. If we see things which are consistent with demand curves sloping downwards (people limiting their purchases of more expensive things) then we’re going to conclude that maybe there is something to Econ 101. Sure, this won’t be a proof pure and perfect, but it will be an indication.

Already a print subscriber? Click here to login/register your account

Trusted reporting.Unlimited access.

Subscribe for full access to Washington Examiner coverage, expert political analysis, and subscriber-only journalism.

Get Unlimited Access

Already a member? Log in

Cancel anytime.