Minimum wage laws can hurt lowskilled workers from "summary" of Free to Choose by Milton Friedman
Milton Friedman argues that minimum wage laws, despite their good intentions, can actually have negative consequences for low-skilled workers. When the government sets a minimum wage above the market equilibrium, it distorts the balance between supply and demand for labor. Employers are forced to pay higher wages than they otherwise would, leading to fewer job opportunities for low-skilled workers.
Friedman explains that employers respond to higher labor costs by cutting back on hiring, reducing work hours, or increasing prices to offset the higher wages. As a result, low-skilled workers may find it harder to secure employment, particularly those who lack the skills or experience to justify the mandated wage. This can exacerbate poverty and unemployment among the very individuals that minimum wage laws are ...
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