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Posted By Don Boudreaux On November 14, 2013 @ 6:18 pm In Books,Health,History,Seen and Unseen,Work | Comments Disabled
And although it’s nearly 19 years old – but not quite as old as the 1994 American Economic Review article by David Card and Alan Krueger  – this paper by Richard Vedder and Lowell Gallaway on the damage done by minimum-wage legislation is also worth reading .
For instance, look at the fast food industry, which employs a lot of lower-skilled, lower-paid employees. Since 1987, output per hour in all non-farm businesses has risen by around 71%, according to the Bureau of Labor Statistics, an annual rate of 2.19%. The Times’ logic says wages in the fast food industry should have risen by a like amount. But BLS data show that productivity at self-serve restaurants has risen only by 0.45% annually since 1987, for total growth of 12%.
The simple fact is that if fast food restaurants increased wages by 71% over a period in which their own labor productivity rose by only 12%, they’d be out of business. Ask yourself: do shuttered businesses pay higher wages than firms that remain in business? If not, you might want to think twice about that $15 minimum wage.
And now for the damage done by minimum-wage legislation combined with Obamacare, check out this essay in yesterday’s Investor’s Business Daily . (HT W.E. Heasley) Its headline says it all:
$10 Minimum Wage + ObamaCare = 70% Labor Cost Hike
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 Cato’s Michael Cannon is justifiably proud that some folks over at the New Republic are unhappy with his steadfast opposition to Obamacare: http://www.forbes.com/sites/michaelcannon/2013/11/13/the-new-republic-dubs-me-obamacares-single-most-relentless-antagonist/
 John Goodman reminds us of this superb brief essay by David Henderson, from 2006, on the damage done by minimum-wage legislation: http://www.ncpa.org/pub/ba550
 the 1994 American Economic Review article by David Card and Alan Krueger: http://davidcard.berkeley.edu/papers/njmin-aer.pdf
 this paper by Richard Vedder and Lowell Gallaway on the damage done by minimum-wage legislation is also worth reading: http://www.ncpa.org/pdfs/st190.pdf
 Continuing on with explanations of the damage done by minimum-wage legislation, here’s a short essay by Pamela Villarreal: http://www.ncpa.org/pub/ib105
 Andrew Biggs discusses the New York Times’s illogic on minimum-wage legislation: http://www.aei-ideas.org/2013/11/the-new-york-times-illogic-on-the-minimum-wage/?utm_source=today&utm_medium=paramount&utm_campaign=111413
 And now for the damage done by minimum-wage legislation combined with Obamacare, check out this essay in yesterday’s Investor’s Business Daily: http://news.investors.com/business/111213-678849-obamacare-minimum-wage-hike-huge-labor-cost-increase.htm
 Walter Grinder points us to this essay by Jim Powell on Algernon Sidney: http://www.libertarianism.org/publications/essays/popular-sovereignty-biography-algernon-sidney
 Sarah Skwire is always a joy to read: http://www.fee.org/the_freeman/detail/a-new-duke-for-the-castle#axzz2kZY6ZeUQ
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