The Easiest to Understand Minimum Wage Argument

[SilentBull]

I always use this example and find it very easy for people not interested in economics, to understand.

Imagine being told that you aren’t allowed to sell your car for less than $3,000, and say you have an old car that isn’t worth more than $2,000. Would you say you would have a hard time selling it? Your $2,000 car would have to compete with nicer cars that are worth $3,000. Why would anyone buy your car for $3,000 when they can buy a car that is actually worth that much?

This would be a problem not just for you, the seller, but also for all the people that really can’t afford a $3,000 car and would love to buy yours for $2,000. They would be forced to pay more for a car, than they can afford, which would result in them not buying a car at all, or going deeper into debt in order to get one.

The rest of the article: http://www.truthinexile.com/best-argument-against-raising-minimum-wage/

 

[SilentBull]

No feedback on the article? I've received some nice traffic and likes on Facebook from some who have apparently shared it there.

 

[angelatc]

I think that it is a good analogy, but people are not interested in learning. We are a tribal species.

 

[mczerone]

The minimum wage debate is like trying to determine the official diet of the flea population on a cancer-plagued dog.

If people really wanted competitive, stable wages that both kept up with cost of living and didn't wildly diverge from the "1%ers" pay, they'd be clamoring for an end to the Federal Reserve - not bickering over whether $10 or $15 is more fair.