4min chapter

The Genius of Thomas Sowell cover image

Sowell's views on Minimum Wage Laws

The Genius of Thomas Sowell

CHAPTER

The Effects of Minimum Wage Laws on Unemployment

So Will says minimum wage laws are in fact beneficial to those workers who continue to be employed, but at the expense of the unemployed. So Will: Labor unions typically support minimum wage laws because these laws help keep younger, less skilled workers from competing for their union jobs. Members of unpopular racial and ethnic groups are hurt most by minimum wage laws as they make it cheaper to discriminate against minority workers than it would be in a free market. Better working conditions lead to lower pay since money for better conditions must come from somewhere.

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