Minimum wage laws can lead to unemployment from "summary" of Basic Economics by Thomas Sowell
Minimum wage laws, like other price controls, can lead to unintended consequences. When the government imposes a minimum wage that is above the level that would be set by supply and demand in a free market, it creates a situation where there is a surplus of labor. In other words, there are more people willing to work at the minimum wage than there are employers willing to hire at that wage. This surplus of labor leads to unemployment, as some workers are unable to find jobs at the mandated minimum wage. Employers are reluctant to hire workers at a wage that exceeds their productivity, as they would operate at a loss. As a result, some workers, particularly low-skilled and inexperienced workers, may find themselves priced out of the labor market because of the minimu...
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