The much-debated $15 minimum wage became the law of the land for millions of citizens in California and New York, but the real impact of the legislation could be devastating. George Mason University economist Don Boudreaux, like a majority of economists, is a staunch believer in the economic theory that if you raise the price of something, everything else being equal, you get less of it.
Thus implementing the $15 minimum wage will destroy jobs for the least skilled members in the workforce. “The vast majority of studies on the minimum wage, I’m estimating 70 percent, show a significant negative effect on minimum wages on the employment of unskilled workers, usually proxy by teen-agers,” Boudreaux says. But not only do you have job loss, Boudreaux reasons, the unskilled workforce, almost 4 percent of them under the age of 25, will lose the valuable opportunity to gain experience in the workplace.
Boudreaux joins host Nick Gillespie to further explain the conundrum in this edition of Reason.TV.
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