See
Minimum Accuracy, Maximum Illogic by Don Boudreaux of Cafe Hayek.
"Here’s a letter to The Guardian; (I thank Rush Olson for the pointer to the Guardian report):
Aghast that many businesses have the gall to lobby
against legislation that arbitrarily raises their costs, you assert that
“a large body of economic research has discredited” the claim that
raising the minimum wage destroys jobs for some low-skilled workers (“How a powerful rightwing lobby is plotting to stop minimum wage hikes,” Feb. 20).
First, your report presents a wholly misleading account of the
current state of research. As economists Jonathan Meer (of Texas
A&M) and Jeremy West (of M.I.T.) wrote just last month in a revised
version of a well-respected paper, “[t]he voluminous literature on
minimum wages offers little consensus on the extent to which a wage
floor impacts employment.”* Profs. Meer and West, justly critical of
the shortness of the time spans examined by ‘pro’-minimum-wage studies,
then present powerful evidence that minimum wages do in fact over
several years slow job growth for low-skilled workers.
Second, your claims on behalf of the minimum wage are specious on
their face. If you really believe that “employment expands with wages,”
you should also believe, say, that newspaper advertising expands with
rates. The fact that you likely understand that newspaper advertising
would fall if government were to force all newspapers to
arbitrarily hike the advertising rates they charge makes mysterious
your failure to understand that employment falls when government forces
workers to arbitrarily hike the wage rates they charge."
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