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Episode #4 - The Truth About Minimum Wage
4 years ago
213
We are going to tackle the minimum wage issue with facts, figures, economic laws, and logic rather than, what we usually get - emotional calls for the wage rate increase using illogical arguments that are in direct opposition to economic law.
I want to start with a quote by Thomas Sowell from his epic book, Basic Economics that really lays the foundation for this discussion. On page 237 he said:
“By the simplest and most basic economics, a price artificially raised tends to cause more to be supplied and less to be demanded than when prices are left to be determined by supply and demand in a free market. The result is a surplus, whether the price that is set artificially high is that of farm produce or labor.”
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