It’s a very simple thought-if an employer has to pay employees a higher wage, he wouldn’t be able to afford as many employees. If he is allowed to pay what the market will bear, then he will be able to sustain what his business is worth.
Via Daily Caller:
In an appearance on Fox News Channel’s “Hannity” with fill-in host and Daily Caller editor in chief Tucker Carlson, author Thomas Sowell argued that the federal minimum wage law
has been used to undermine companies that employ blacks.
In the fourth quarter of 2012, the black unemployment rate was more than double the rate for whites. But prior to the 1930s, Sowell said, black unemployment was actually lower than white unemployment.
“What changed was the government intervention into the labor market
,” Sowell said. “1930 was the last year in which there was no federal minimum wage. They brought in the Davis Bacon Act.”