Why is it that the states with the highest unemployment rates (Oregon, Washington and Alaska, for example) have the highest minimum wage laws?
Why is it that in any one area the most unskilled workers, usually comprised of teenagers and minorities, have a much higher unemployment rate than the rest of the population?
The answers are explained in a concise article provided by the Ludwig Von Mises Institute explaining why Economists are against raising the minimum wage. What You Need to Know About the Minimum Wage
The short answer is that Economists are against the minimum wage precisely because it hurts the poorest members of society the most. As the Wall Street Journal has noted, “This is one of the most settled propositions in economics, second only perhaps to free trade.”
What’s ironic about this is that, contrary to public opinion, it is actually those who oppose raising the minimum wage that have the poorest members of society in mind.
This was a difficult concept for me to understand when I first got into economics. However, the more I read about it, and the more I see what the minimum wage results are around the world, and in the United States, the more I come to agree with it. It is a must read for anybody who considers themselves on the side of the little guy.
Update: Alex Tabarrok, Professor Of Economics, also chimes in.