Causes Quote by Milton Friedman
“Every economist knows that minimum wages either do nothing or cause inflation and unemployment. That's not a statement, it's a definition.”
About This Quote
Source Speech: Economic Policy Lecture, 1975
Minimum wage policies either have little impact or cause higher prices and job loss, making them ineffective as a tool for improving wages.
In simple terms: Minimum wage can hurt jobs.
Key Takeaway
Consider alternatives to raise wages.
Themes
economics
labor markets
policy
Mood
analytical
critical
Type
theoretical
controversial
When to use this quote
- government policy debates
- business salary planning
Key Concepts
inflation
employment
wage theory
Questions to Reflect On
- What evidence supports or refutes this claim?
- Are there contexts where minimum wage works?
A Different Perspective
Even if some workers benefit, overall employment may suffer.
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