Executive Summary
Bureaucratic Overreach and Minimum Wage Laws
By Tae-Sik • Published June 18, 2020
Minimum wage laws set artificial value thresholds that restrict the free exchange of labor and capital. By preventing low-skilled workers from selling labor at lower prices and stopping small businesses from hiring them, these laws create barriers to entry. Ultimately, government price-fixing harms the vulnerable and disrupts dynamic market coordination.