The Minimum Wage Law Helps The Unskilled? No

From: D
Sent: Sun 5/22/2016 8:10 AM
Subject: Minimum Wage

Hello Dr. Block.

It was a pleasure to meet you in person and to shake the hand of the hand that shook hands with Murray.

There is also a video of your leap over the minimum wage barrier from your presentation on my Read Rothbard YouTube channel:

Q. – Supporters of the minimum wage argue that it will put more money into the hands of more people, thus giving a boost to the local economy that more than offsets the “modest” price increases that would result.  What is your favorite way to take this argument apart? Cordially, D

Dear D: Your argument assumes the minimum wage “will put more money into the hands of more people.” Not so, not so. Suppose we raise the minimum wage to $100 per hour. You think that the people now making, oh, $10 per hour will be paid $100? No. They will all be fired. Such a minimum wage “will put LESS money into the hands of more people.” Well, very temporarily, a very, very few people might actually get that $100. But it will only be for a short time, if at all.

Here is a bibliography of the minimum wage:

Akihari, 2016; Batemarco, 2014; Baum, 2015; Becker, 1995; Block, 1987, 2000, 2001, 2002, 2014, 2015; Block and Barnett, 2002; Boudreaux, 2015A, 2015B, 2016A, 2016B, 2016C, 2016D, 2017; Burkhauser, Couch, Wittenburg, 1996; Caplan, 2013A, 2013B, 2015; Cappelli and Block, 2012; Deere, Murphy and Welch, 1995; Ebeling, 2018; European, undated; Friedman, undated; Gallaway and Adie, 1995; Galles, 2014; Gitis, 2014; Hanke, 2014A, 2014B; Hazlitt, 1946; Hovenga, 2013; Howland, 2013; Klein and Dompe, 2007; Landsburg, 2004; Leonard, 2016; Lingenfelter, et. Al., 2017; McCaffrey, 2014; McCormick and Block, 2000; Mercer, 2015; Morse, 2018; Murphy, 2014, 2015A, 2015B; Neumark, 2015; Neumark and Wascher, 1992, 1995; North, 2014; Parker, 2018; Powell, 2013; Reisman, 2014; Riley, 2018; Rothbard, 1988, 2015A, 2015B; Rustici, 1985; Salihu, 2013; Saltsman, 2015; Schiff, undated; Shaw, 2016; Sohr and Block, 1997; Sowell, 1995; Tucker, 2915; Vedder and Gallaway. 2001; Vuk, 2006; Ward, 2016; Wenzel, 2013, 2015, 2017; Wiegold, 2014; Williams, 1982, 2013, 2014A, 2014B, 2014C, 2015A, 2015B, 2016A, 2016B, undated.

Akihari, Ferghane. 2016. “In Europe, Workers Use Minimum Wage Laws to Exclude their Competition.” July 13;

Batemarco, Robert, Charles Seltzer and Walter E. Block.  2014. “The irony of the minimum wage law: limiting choices versus expanding choices.” Journal of Peace, Prosperity & Freedom, Vol. 3, pp. 69-83;,+Prosperity+%26+Freedom&source=bl&ots=GjT4AhPz-j&sig=zEQLmFIvlHvsQH5Llp6cyIMFzbs&hl=en&sa=X&ei=JPZYVZO1JI_hsAS-0YGoBQ&ved=0CDsQ6AEwBQ#v=onepage&q=Journal%20of%20Peace%2C%20Prosperity%20%26%20Freedom&f=false;,+Prosperity+%26+Freedom&source=bl&ots=GjT4AhPz-j&sig=zEQLmFIvlHvsQH5Llp6cyIMFzbs&hl=en&sa=X&ei=JPZYVZO1JI_hsAS-0YGoBQ&ved=0CDsQ6AEwBQ#v=onepage&q=Journal%20of%20Peace%2C%20Prosperity%20%26%20Freedom&f=false

Baum, Caroline. 2015. “Caroline Baum Slams Paul Krugman (on minimum wage)” July 28;

Becker, Gary. 1995.  “It’s simple: Hike the minimum wage, and you put people out of work.”

Business Week. March 6. p. 22;

Block, Walter E. 1987. “Minimum Wage Law No Help to Unskilled,” Dateline Canada: Understanding Economics Through Press Reports, p. 37.

Block, Walter E. 2000. “Heritage Stumbles on Minimum Wage,” The Free Market, October, Volume 18, Number 10;

Block, Walter E. 2001. “The Minimum Wage: A Reply to Card and Krueger,” Journal of The Tennessee Economics Association, Spring;

Block, Walter E. 2002. “Delusions of rising wages,” New Orleans City Business, January, 28, p. 28.

Block, Walter E. 2015. “Abolish the minimum wage law.” September 6;

Block, Walter E. 2014. “The Minimum Wage Law.” January 17;

Block, Walter and William Barnett II. 2002. “The Living Wage: What’s Wrong,” The Freeman Ideas on Liberty,December, Vol. 52, No. 12, pp. 23-24

Boudreaux, Don. 2015A. “Dartmouth Remarks On the Minimum Wage.” November 17;

Boudreaux, Don. 2015B. “Noah Smith is no Adam Smith.” November 24;

Boudreaux, Don. 2016A. “The Cruelty of the Minimum Wage.” (Cartoon) January, 15;

Boudreaux, Don. 2016B. “A UMass Professor is Challenged: Should Economists Use Low-Skilled Workers as Guinea Pigs?” March 31;

Boudreaux, Don. 2016C. “Blazing Blindness in France.” May 26;

Boudreaux, Don. 2016D. “Considering the Government Policy of Mandated Theft by Workers.” September 12;

Boudreaux, Don. 2017. “Yes, Students Still Need Econ 101.” February 22;

Burkhauser, Richard V., Couch, Kenneth A., Wittenburg, David.  1996.  “Who Gets What From Minimum Wage Hikes: A Replication and Re-estimation of Card and Krueger.”  Industrial and Labor Relations Review, 49, no. 3, April, pp. 547-552.

Caplan, Bryan. 2013A. “Phase-In: A Demagogic Theory of the Minimum Wage.” December 5;

Caplan, Bryan. 2013B. “The Myopic Empiricism of the Minimum Wage.” March 12;

Caplan, Bryan. 2015. “Identificationists Beware.” June 10;

Cappelli, Peter and Walter E. Block. 2012. “Debate over the minimum wage law.” Economics, Management, and Financial Markets7(4), December, pp. 11-33;

Deere, Donald, Murphy, Kevin M., Welch, Finis. 1995.  “Employment and the 1990-91 Minimum-Wage Hike.”  American Economic Review. 85, no. 2, May, pp. 232-237.

Ebeling, Richard. 2018. “Freedom and the Minimum Wage.” February 13;

European countries:

Friedman, Milton. Undated. “A minimum-wage law is, in reality, a law that makes it illegal for an employer to hire a person with limited skills.”,+in+reality,+a+law+that+makes+it+illegal+for+an+employer+to+hire+a+person+with+limited+skills.%E2%80%9D&source=bl&ots=oBhaVzo4_o&sig=tPYbXajMPWQADdFdRvvbUvPXsbs&hl=en&sa=X&ei=QoU4U-fSIKeisQTIyoGQBQ&ved=0CDwQ6AEwAw#v=onepage&q=Playboy%20Milton%20Friedman%3A%20%E2%80%9CA%20minimum-wage%20law%20is%2C%20in%20reality%2C%20a%20law%20that%20makes%20it%20illegal%20for%20an%20employer%20to%20hire%20a%20person%20with%20limited%20skills.%E2%80%9D&f=false

Gallaway, Lowell and Douglas Adie. 1995. Review of Card and Krueger’s Myth and

Measurement: The New Economics of the Minimum Wage, Cato Journal, Volume 15, no.1

Galles, Gary. 2014. “Cognitive Dissonance on Minimum Wages and Maximum Rents.” April 15;

Gitis, Ben. 2014. “How Minimum Wage Increased Unemployment and Reduced Job Creation in 2013” March 30;

Hanke, Steve H. 2014A. “Minimum Wage Laws Kill Jobs.” January 29;

Hanke, Steve H. 2014B. “Let the Data Speak: The Truth Behind Minimum Wage Laws.” Globe Asia, April;

Hazlitt, Henry. 2008 [1946]. Economics in One Lesson. Auburn, AL: Mises Institute;

Hovenga, Claire, Devaja Naik and Walter E. Block. 2013. “The Detrimental Side Effects of Minimum Wage Laws.” Business and Society Review; Winter, Volume 118, Issue 4, pp. 463-487;;,,wblock@loyno.edu

Howland, David. 2013. “Increased Minimum Wage, Decreased Economic Prosperity.”  November 16;

Klein, Daniel B. and Stewart Dompe. 2007.  “Reasons for Supporting the Minimum Wage: Asking Signatories of the ‘Raise the Minimum Wage’ Statement,” Econ Journal Watch. Vol. 4, No. 1, January, pp. 125-167

Landsburg, Steven E.  2004. “The sin of wages; the real reason to oppose the minimum wage. Slate.July 9.

Leonard, Thomas C. 2016. “Minimum wages were first designed to keep women and minorities out of jobs.” April 5;

Lingenfelter, Jonathan, Jose Dominguez, Leandra Garcia, Bryce Mayon and Walter E. Block. 2017. “Closing the Gap: Why Minimum Wage Laws Disproportionately Harm African-Americans.” Economics, Management, and Financial Markets12(1): 11–24;; pw: AddletonAP2009

McCaffrey, Matt. 2014. “IKEA’s ‘Minimum Wage.’” July 4;

McCormick, Paul and Walter E. Block. 2000. “The Minimum Wage: Does it Really Help Workers,” Southern Connecticut State University Business Journal, Vol. 15, No. 2, Fall-Spring, pp. 77-80

Mercer, Ilana. 2015. “Minimum Wage, Maximum Folly’ In The Ivy League.” May 10;

Morse, Brandon. 2018. “The ‘Fight For 15’ Crowd Is Now Protesting The Self-Checkout Machines Replacing Them.” April 10;

Murphy, Robert P. 2014. “Economists debate the minimum wage.” February 3;

Murphy, Robert P. 2015A. “The Minimum Wage ‘Experiments.’” June 16;

Murphy, Robert P. 2015B. “Robert Reich Shills for $15 Minimum Wage.” June 22;

Neumark, David. 2015. “The Effects of Minimum Wages on Employment.” December 21;

Neumark, David and Wascher, William. 1992. “Employment Effects of Minimum and Subminimum Wages: Panel Data on State Minimum Wage Laws.”  Industrial and Labor Relations Review 46 (October), pp. 55-81.

Neumark, David and William Wascher. 1995. “Minimum wage effects on employment and school enrollment.” Journal of Business Economics and Statistics. Vol. 13, No. 2, pp. 199-207.

North, Gary. “How Minimum Wage Laws Promote Racial Discrimination.” July 19;

Powell, Benjamin. 2013. “Krugman Contra Krugman on the Minimum Wage?” December 12;

Parker, James. 2018. “News With a Twist: Should Louisiana Raise the Minimum Wage?” May 5;

Reisman, George. 2014. “How Minimum Wage Laws Increase Poverty.” April 4;

Riley, Jason L. 2008. “Does the Constitution Mandate Minimum Wage Hikes? A misguided court ruling ignores the history of labor laws intended to keep blacks from working.” July 31;

Rothbard, Murray N. 1988. “Outlawing Jobs: The Minimum Wage, Once More.”  The Free Market.  Auburn, AL: The Ludwig von Mises Institute, December, 1, 7-8;

Rothbard, Murray N. 2015A. “On the minimum wage.”July 29;

Rothbard, Murray N. 2015B. “The Crippling Nature of Minimum-Wage Laws.” November 6;

Rustici, Thomas. 1985. “A public choice view of the minimum wage.” Cato Journal. Vol. 5, No. 1, pp. 103-131;

Salihu, Bardhyl N. 2013. “Bending the Laws of Economics.” February 19;

Saltsman, Michael. 2015. “Minimum Wage Hike Forces a Nonprofit Restaurant to Close.” January 5;

Schiff, Peter. Undated.

Shaw, Chris. 2016. “Britain’s Minimum Wage Short-Changes Young Workers.” July 21;

Sohr, Kevin and Walter E. Block. 1997. “The Minimum Wage,” The Freeman Ideas on Liberty, November, pp. 681-682.

Sowell, Thomas. 1995. “Repealing the Law of Gravity,” Forbes, May 22; p. 82.

Vedder, Richard K., and Lowell Gallaway. 2001. “Does the Minimum Wage Reduce Poverty?” Employment Policies Institute, June.

Vuk, Vedran. 2006. Professor Stiglitz and the Minimum Wage.” September 4;


Ward, Victor, J. 2016. “The Minimum Wage Destroys More Than Jobs; It Destroys the Opportunity for Inner-City Youth to Learn.” April 6;

Wenzel, Robert. 2013. “The Wrong Way to Argue Against Minimum Wage Laws.” February 17;

Wenzel, Robert. 2015. “How Minimum Wage Increases Went Bad in San Francisco, Oakland, Seattle and Beyond.” June 10;

Wenzel, Robert. 2017. “How to Smash Slick Lefties Who Advocate the Minimum Wage,” July 23;;

Wiegold, Benjamin M. 2014. “The High Cost of Minimum Wages” May 30;

Williams, Walter, E. 1982. The State Against Blacks, New York, McGraw-Hill.

Williams, Walter, E. 2013. “Higher Minimum Wages.” February 27;

Williams, Walter, E. 2014A. “Politics and Minimum Wage.” January 8;

Williams, Walter, E. 2014B. “The State Against Blacks and the Minimum Wage.”

Williams, Walter, E. 2014C. “Embarrassing Economists.” October 21;

Williams, Walter, E. 2015A. “Self-Enforcing Discrimination.” March 31;

Williams, Walter, E. 2015B. “Embarrassing Economists.” May 10;

Williams, Walter, E. 2016A. “Elitist Arrogance.” June 1;

Williams, Walter, E. 2016B. “Compensating Differences.” August 2;

Williams, Walter, E. Undated.


3:08 am on February 16, 2019