It is only through the increase in capital goods, i.e., through the enhancement and the expansion of the infrastructure, that labor can become more productive and earn a higher hourly wage.
Original Article: “Understanding Minimum Wage Mandates: Empirical Studies Aren’t Enough”
This Audio Mises Wire is generously sponsored by Christopher Condon. Narrated by Michael Stack.
President Joe Biden has promised to raise the minimum wage from $7.25 to $15 per hour.
Some economists are of the view that the increase in the minimum wage could cause an increase in unemployment. Other economists think that the increase is unlikely to harm the labor market. Hence, they are of the view that raising the minimum wage could lift the workers’ living standards.
For example, in a