How Democrats Kill Jobs | Hoover Institution: "The federal government has apparently (and foolishly) assumed that these effects will be small, and that the unemployed can somehow be better helped by government interventions into the labor markets. However, only a free market in labor is able to balance changes in both supply and demand, so as to reduce the incidence of unemployment. Government efforts to impose various minimum wages will, happily, have little adverse effect if the market wage is greater than the government mandate. But the same form of increase could have devastating effects on labor markets when the required wage is set too high relative to market wages. The number of workers eager to take jobs at these higher levels will be great, but the number of jobs available at that wage level will shrink. Unemployment levels will increase, and working off the books could increase."
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