From Economic Policy Journal:
Well, at one time, NYT
understood basic economics and the harm of minimum wage laws. Below is a January 1987 NYT
The Right Minimum Wage: $0.00
The Federal minimum wage has been frozen at $3.35 an hour for six years. In some states, it now compares unfavorably even with welfare benefits available without working. It's no wonder then that Edward Kennedy, the new chairman of the Senate Labor Committee, is being pressed by organized labor to battle for an increase.
No wonder, but still a mistake. Anyone working in America surely deserves a better living standard than can be managed on $3.35 an hour. But there's a virtual consensus among economists that the minimum wage is an idea whose time has passed.
Raising the minimum wage by a substantial amount would price working poor people out of the job market. A far better way to help them would be to
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