Column: Dot – Minimum wages do not create jobs | Chroniclers


By Ryan Young InsideSources

There are over 10 million job openings in America right now. The shortage of labor contributes to shortages of goods, rising prices and problems with the supply network.

One solution often proposed today is to increase the minimum wage, but that would not work. Instead, policymakers should ease regulatory barriers to creating jobs that you never need, curb excessive professional licensing, reduce trade barriers, relax zoning and land use regulations. and strive to contain inflation.

Defenders of the minimum wage rightly argue that a higher wage will persuade more people to join the workforce. But what they might not realize is that a higher minimum wage wouldn’t necessarily provide that higher wage. This is because minimum wages have very real tradeoffs.

Workers earn more than wages. They also receive a non-wage salary. If the law requires employers to increase wages, they can make up the difference by reducing non-wage wages.

Workers may have bigger digital wages – and bigger tax deductions – but aren’t necessarily better off because other benefits are being taken away. The exact combination of tradeoffs would be different for every workplace and every employee. But these compromises would still exist, as would the current labor shortage.

Catering workers, for example, could lose free shift meals. Customers can leave smaller tips if they think their waiter is getting a higher hourly wage. A restaurant owner may decide not to hire busboys and instead ask waiters to add these tasks to their already full plates.

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