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Economy

The Unintended Consequences of Minimum Wage Laws

By Sarah Brodsky on Mar 13, 2007

The minimum wage is hurting colleges and universities in Missouri:

Kelley said she’s happy to follow the mandate of the people; she just wishes it came with some instruction on how departments are supposed to stretch their budgets.

“This is an unfunded mandate from the masses,” she said. “No additional funds come with it, just the instructions to do it.

The article describes how colleges must now pay higher wages to the students who work in their department offices for a few hours a week.

Minimum wage laws are supposedly on the books to help poor, working families–not students who are saving their money for spring break. This is the perfect example of how the laws misfire.

In contrast, the Earned Income Tax Credit helps only the poor and doesn’t disproportionately burden any particular businesses or nonprofits.

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Sarah Brodsky

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