Friday, April 01, 2005
What Minimum Wages Mean
There is a political cry in the air these days to increase the minimum wage. Most any student who has ever taken a course in Principles of Microeconomics has heard that the demand and supply cross of the economist shows that a minimum wage decreases the amount of labor employed and leads to unemployed workers. But the graphical models of the economist may lead students to not truly understand how a minimum wage works in the real world. If you want to get your hands dirty with the economic reality of an increase in the minimum wage, then you need to click right here.