By writer Kevin Ryan

The minimum wage is a classic example of an economic policy misunderstood by a huge portion of the population. The entire concept of a minimum wage is ridiculous. In any other context it would be laughable.

For example, if I’m a restaurant owner, and I want to make more money, can I just double my prices? What will happen to sales if I do that?

Or take oil prices. Russia is economically collapsing because the price of oil has fallen by so much. Can they turn things around by simply increasing the price of their oil back to $100 a barrel?

What if a law was passed saying no cars in America can be sold for less than $50,000… would people still buy Ford Fiestas? Or would you switch to a car that was actually worth $50,000? Or buy a bike? Or just start walking?

Well the same logic applies to workers. I’m not going to hire a worker who can only produce $5 per hour for $11 per hour, because it would not be financially viable. Instead, I’m going to either outsource to a country with lower labor costs, automate, or switch to workers that are more productive because of their experience, education, or training.

And before you claim that greed is behind these decisions, ask yourself the following. Why won’t you pay $50 for a pack of gum? Why won’t you buy a Ford Fiesta for $50,000? Why won’t you pay your babysitter $22 an hour? Why won’t you pay me for reading my article? Don’t I deserve a few bucks?? I HAVE A CHILD TO RAISE!! Are you greedy? ARE YOU EVIL?

Of course not. Supply and demand dictate how much people are willing to pay for a product like labor. Not corporate fiat. Not the greed or benevolence of owners.

Proponents also seem to think…READ MORE