by Alabama Policy Institute
Alabama Policy Institute
April 24, 2014
Since its inception in 1938, increasing the minimum wage has proven to increase market prices and eliminate jobs. By artificially increasing the price of labor, i.e. raising the minimum wage, employers must decrease the amount of labor they can purchase, leading to further increases in unemployment, especially for young, low-skilled workers. While employers will be able to adjust by raising prices and/or reducing employees, individuals who lose their jobs lose the opportunity to gain skills thus decreasing their potential for future employment. As America’s economy struggles to climb out of the last recession, increasing the minimum wage will only serve as a drag to recovery and may even harm intended beneficiaries.

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