The Minimum Wage Law Should Not Exist - 1684 Words

The minimum wage law was first enacted in January 1938 (Mutari, Ellen), and since then, people have falsely been led to believe that it is beneficial to the economy as well as the general population. It has commonly been seen as a method to reduce poverty by redistributing income in order to make sure that people earn a healthy, living wage; however, evidence has shown that it in fact does just the opposite. Forcing a minimum wage goes against the free market, and severely disrupts the natural process of supply and demand. Disrupting the supply and demand process results in many negative consequences, and produces an important question: should the minimum wage law exist? The minimum wage law should not exist because it causes increased†¦show more content†¦This is exceedingly harmful, counterproductive and against what the minimum wage implementation was intended for, which was to make sure everyone is able to earn a living wage. Although some people may be able to earn a li ttle more than they would have otherwise been able to, hundreds of thousands of other potential workers are no longer able to find work. In a book written by Christopher Flinn, titled The Minimum Wage and Labor Market Outcomes, he arrived to the conclusion that: â€Å"A minimum wage increase cannot simultaneously yield an increase in the employment rate and a decrease in the unemployment rate† (77). A loss of jobs resulting from the minimum wage law is inevitable, but if this law was rightfully extinguished, wages would naturally be set by supply and demand, and all types of people would be able to find work, no matter what their skill level is. Individuals would be paid based off of their production value, and if they begin to produce more than they are being paid, the demand for their work will go up and they will receive a raise, or they will search for another employer who is able to recognize their value. The minimum wage law should be overturned immediately due to the s ignificant amount of jobs being ruined through the destruction of supply and demand. With that being said, another reason the minimum wage law should not exist is because it increases the prices of goods and services. An additional reaction that