Today I came across a story that apparently has been around for a few months about a fast food restaurant in Dearborn Heights, MI called Moo Cluck Moo where they pay their starting employees an astounding $12.00, soon to be $15, per hour. Needless to say this has brought cries from many that are variations on “See, you greedy corporate fat cats, you can pay a living wage and make money!” (Of course none of these people state clearly how much a “living wage” is or who
Tag Archives: minimum wage
Price Controls are Bad, and Minimum Wage is a Price Control
You would think it should be common sense.
If prices are arbitrarily set too low, more people will want to but the product or service and fewer will want to produce it, and a shortage results. If prices are set arbitrarily too high,more people will want to produce the product or service, but fewer will want to buy it, resulting in a glut.
One only has to reflect on the recent stories from Venezuela where, among other staple goods, there is a shortage of toilet paper. Why? Because the government