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Higher minimum wage not a panacea for all

Citations

One News Now discusses the effects of minimum wage and collective bargaining policies on the poor with Ryan Young. 

Ryan Young of the Competitive Enterprise Institute says increasing the minimum wage and/or expanding collective bargaining does help make some people better off – but he says there are trade-offs that hurt other people. "So, on balance, they don't increase human well-being on net," he states.

According to Young, a lot of people think with their hearts more than their heads. "And of course, any sound reasoning requires both – but when you look at someone who benefits from an increased minimum wage, it makes it a little easier for them to make the rent or pay the electricity bill. But what about everyone?" Young wonders.

"When you have a higher minimum wage, maybe some workers get their hours cut so they don't actually make more money and can't pay their bills the same way; [or] maybe they get reduced fringe benefits on the job."

Young adds that some people may never get hired in the first place, especially young people who haven't yet had the opportunity to gain experience and build skills. Similar arguments have been made from individuals, think tanks, and industry groups when it comes to raising the minimum wage.

Read the full article at One News Now.