Yet it ought to be clear that a minimum wage law is, at…
“Yet it ought to be clear that a minimum wage law is, at best, a limited weapon for combatting the evil of low wages, and that the possible good to be achieved by such a law can exceed the possible harm only in proportion as its aims are modest. The more ambitious such a law is, the larger the number of workers it attempts to cover, and the more it attempts to raise their wages, the more likely are its harmful effects to exceed its good effects.”
About This Quote
This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.
Minimum wage laws can help low wages but only if modest; overly ambitious wages may cause more harm than benefit.
In simple terms: Limited wage caps help only if modest; otherwise they can backfire.
Key Takeaway
Set realistic wage goals to avoid negative side effects.
Themes
economics
labor policy
minimum wage
Mood
analytical
cautious
Type
policy
economic
When to use this quote
- legislative debates
- business planning
- employment negotiations
- social advocacy
Key Concepts
trade‑offs
policy design
unintended consequences
Questions to Reflect On
- What modest wage level balances benefits and harms?
- How do higher wages affect employment rates?
A Different Perspective
Assumes market conditions are static.