Ask the Economist: Minimum Wage Laws or Minimum Skills Laws?
Many feel-good policies are ultimately disastrous. One of these, the concept of a government-mandated minimum wage, is particularly counterproductive. On the face of it, what could be so bad about guaranteeing the poorest workers in society receive wages high enough to ensure a minimum standard of living? (Especially since it only comes at the cost of “immoral corporate greed”?) The answer is: a lot.