--- title: "Meaning & Key Takeaway of: High mandated minimum wages will throw…" description: "\"High mandated minimum wages will throw people out of work and onto the welfare rolls in cases where unemployment benefits exist. When it comes to welfa..." image: "https://sms4smile.com/quotes/i/bab/steve-hanke-18876_economics_high-mandated-minimum-wages-will-throw-p_1439789.jpg" --- # High mandated minimum wages will throw people out of work… ![“High mandated minimum wages will throw people out of work and onto the welfare rolls in cases where unemployment benefits exist. When it comes to welfare payments, they obey the laws of economics, too. Indeed, if something - like unemployment - is subsidized, more of it will be produced.” quote by Steve Hanke](https://sms4smile.com/quotes/i/bab/steve-hanke-18876_economics_high-mandated-minimum-wages-will-throw-p_1439789.jpg) [Download](https://sms4smile.com/quotes/i/bab/steve-hanke-18876_economics_high-mandated-minimum-wages-will-throw-p_1439789.jpg) [Open image](https://sms4smile.com/quotes/i/bab/steve-hanke-18876_economics_high-mandated-minimum-wages-will-throw-p_1439789.jpg) > “High mandated minimum wages will throw people out of work and onto the welfare rolls in cases where unemployment benefits exist. When it comes to welfare payments, they obey the laws of economics, too. Indeed, if something - like unemployment - is subsidized, more of it will be produced.” [Steve Hanke](https://sms4smile.com/quotes/author/steve-hanke/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Higher minimum wages can increase unemployment if benefits already exist, because subsidizing labor reduces job demand. **In simple terms:** Raising wages may cause job loss when benefits are present. Key Takeaway Consider wage‑benefit balance. Themes economics labor markets policy welfare unemployment Mood cautious analytical Type policy economic When to use this quote - government policy debates - business hiring decisions - social safety net design Key Concepts Subsidy effect elasticity incentive structures Questions to Reflect On - How do wage hikes affect low‑skill employment? - Can targeted subsidies replace minimum wage policies? A Different Perspective If wages are too high, businesses may cut jobs despite intentions to help workers. ★ ★ ★ ★ ★ No ratings yet [Economics](https://sms4smile.com/quotes/about/economics/) [Like Unemployment](https://sms4smile.com/quotes/about/like-unemployment-1715567/) [Minimum Wages](https://sms4smile.com/quotes/about/minimum-wages-277635/) [People](https://sms4smile.com/quotes/about/people/) [Something](https://sms4smile.com/quotes/about/something/) [Unemployment benefits](https://sms4smile.com/quotes/about/unemployment-benefits/) [Unemployment Subsidized](https://sms4smile.com/quotes/about/unemployment-subsidized-5148975/) [Wage](https://sms4smile.com/quotes/about/wage/) [Welfare Payments](https://sms4smile.com/quotes/about/welfare-payments-5148976/) [Will](https://sms4smile.com/quotes/about/will/) [Work](https://sms4smile.com/quotes/about/work/) ## Related quotes > [“hat are the effects of increasing minimum wages?” asks Paul Krugman. “Any Econ 101 student can tell you the answer: The higher wage reduces…](https://sms4smile.com/quotes/don-watkins/hat-are-the-effects-of-increasing-minimum-wages-asks-paul-krugman-any/) [Don Watkins](https://sms4smile.com/quotes/author/don-watkins/) > [Free market economists frequently see minimum wage legislation as mere political intervention. 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