The Effect of a Minimum Wage Law on the Economy

A minimum wage law makes it illegal for employers to hire anyone whose marginal productivity is less than $10 per hour, writes John Sutter. Employers who do not know that will soon witness their business fail as it continues to hemorrhage money on wages it cannot afford, he says. Minimum wage laws are particularly pernicious to the people who need to work the most and they are a causal factor in the emergence of wide-scale unemployment - Sutter.