Oklahoma voters recently voted 55%-45% against a three-year doubling of the minimum wage from $7.25 an hour to $15. They were partly motivated by the truth contained in economist Thomas Sowell’s pithy remark that the real minimum wage is zero — employers can fire staff instead of paying them more.
Workers who keep their jobs enjoy their increased pay, but higher labor costs kill jobs. The losers get nothing but a harsh lesson in the unsentimental facts of economics. A recent survey from the Employment Policies Institute found that 3 out of every 4 economists thought the Oklahoma wage hike would mean fewer jobs for young people. It’s as if 3 out of every 4 people expected night to follow day.
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