by Luis Rivera III
Here Dr. Walter Block tells host Sam Seder that the minumim wage law is not a law that employs workers. Sam Seder argues that the minimum wage puts more money in the hands of people and thus gives them more money to spend in the economy and therefore helps the economy. Seder among other things seems to imply that Wal-Mart is in the wrong because many of their workers are on government assistance. He believes that “tests” prove that minimum wage laws do in fact help the economy as well as increase employment. Block counters this by stating that economic theory cannot be tested in society, he says it can only be illustrated. Even using Seders argument, Block states that about 95% of empirical studies show that minimum wage hurts the economy by creating unemployment. Block tries to explain that raising the minimum wage causes unemployment but not necessarily right away – he says that the answer to how long it takes for an increase in minimum wage to cause unemployment is empirical. This and more in this video debate between Walter Block and Sam Seder.
For More:
http://www.walterblock.com/wp-content/uploads/publications/minimum_wage.pdf
