Ten Unavoidable Problems with a “Living” Minimum Wage – A Free Amazon Kindle Book

Milton Friedman’s conclusion was, “The rise in the legal minimum-wage rate is a monument to the power of superficial thinking.”  Ten unavoidable problems with a living minimum wage are discussed in this short book.

First, millions more people will be unemployed even if the number of jobs remains constant. Second, high-cost labor will be used at a too-high wage, reducing total output. 

Third, there will be discrimination against the disadvantaged because nobody will hire disadvantaged labor when better workers can be hired at the same living wage.  Fourth, in the long run, at a $10 or $15 minimum wage, more people will choose to become or stay minimum wage workers for life, reducing total output.

Fifth, there will be job lock and few minimum-wage job openings.  People will be locked into whatever minimum wage jobs they find even if it’s the worst job for them. 

Sixth, when jobs are difficult to find, there will be wasteful rent-seeking job search costs. Seventh, the competition for the limited jobs will lead to unethical rent seeking such as the casting couch when some job seekers will do anything to find work.

Eighth, a high living wage will knocking the first step off the job ladder for people who need it the most.  Ninth, there will be reduced job training for everyone.   

Tenth, the minimum wage is very inaccurate redistribution.  Some of the poor gain; some of the poor lose.  Some of the rich gain; more of the rich lose.

Using non-technical language and a dialogue format, this short book explains the problems with a high “living” minimum wage and the misleading minimum wage arguments.   Economics concepts are presented in a Socratic discussion with a labor activist at McDonald’s.. The book’s appendix contains supporting peer-reviewed work. 

The author has a Ph.D. in Economics from the University of Maryland at College Park and has taught economics in the United States, Europe and Asia.

Go to Amazon.com and search for “Ten Unavoidable Problems with a “Living” Minimum Wage”  by Steve Baba, Ph.D to download the book for free for the five days Monday, June 16, 2014 through Friday, June 2014.  After June 20, 2014, the book is affordably price at $2.99. Or go directly to the book at:  http://www.amazon.com/dp/B00KYDDLP4

Contact Information

Steve Baba

Director

EEENI Inc.

Contact via E-mail