Monday, June 15, 2009

Minimum Wages - Good For Some, Bad For Many

In an earlier post, I stated that one of the most important concepts to articulate in an introductory economics course is the fact that policies which are good for some are not necessarily good for society as a whole. As this Wall Street Journal editorial describes, minimum wages are an excellent example. Though the higher minimum wages currently being considered will benefit those who already have and do not lose their jobs, the author states...

The best estimates from studies since the early 1990s suggest that the 11% minimum wage increase scheduled for this summer will lead to the loss of an additional 300,000 jobs among teens and young adults. This is on top of the continuing job losses the recession is likely to throw our way.