Asks Quote by Lawrence Reed
“By mandating an even higher minimum, the living wage prices even more people out of work. The people who push these cockamamie ideas never seem to ask why any employer would hire someone at $8.23 if that person's services are only valued in the marketplace at, say, $5.00.”
About This Quote
Source Speech: Economic Policy Debate, 2010
Higher minimum wages can reduce employment by making labor too costly for employers.
In simple terms: High wages may cut jobs.
Key Takeaway
Consider wage impacts before policy.
Themes
economics
labor
policy
employment
wage
market
Mood
concerned
analytical
Type
policy
economic
debate
When to use this quote
- policy making
- business hiring
- government regulation
- public debate
Key Concepts
Supply and demand
price elasticity
living wage
labor market equilibrium
Questions to Reflect On
- What alternative policies could raise living standards without job loss?
- How do regional cost differences affect minimum wage effects?
A Different Perspective
If wages are too low, workers may still struggle despite employment.
