The document argues that minimum wage is a poor economic policy for three main reasons: 1) It was created during a time of high unemployment and recession in 1938 out of a lack of confidence in free markets. 2) If advocates truly believe it is a good policy, they would argue for a much higher minimum wage like $100/hour, not just $7.50. This reveals the policy is not aimed at ensuring fair pay. 3) Basic economic principles of supply and demand show that raising the price of labor artificially through minimum wage leads employers to hire fewer workers. This harms the very low-skilled workers the policy aims to help.

1. Why the Minimum Wage Is
a Terrible Economic Policy
Matt Brown

2. We’ve All Been There...

3. Minimum Wage Increase
July 2009 - Department of Labor raises Minimum Wage
from $6.55 per hour to $7.25.

4. Sounds Great Right?

5. What Am I Going To Learn?
By looking at simple economics, you will see how it is a
poor economic policy:
History
Fallacy of Government-Hampered Wages
Economics 101

6. A Brief History Lesson
Created in the Fail Labor Standards Act of 1938
Practically no public confidence in the Markets
Federal Government had no confidence in its own self
Act passed to combat 19% unemployment and -6.2% growth in 1938

7. Arbitrarily Set Wages?

8. Why Favor Only $7.50?
If Minimum Wage Advocates believe it is actually a
good policy, why do they favor only a $7.50 - $14
minimum?
Why not $100? $1,000? $10,000?
It’s so employees are paid fairly right?

9. Intro to Economics
Whether we love it or loathe it, supply and demand
operates everything.
What is Supply & Demand you might ask?
When the price of something (SUPPLY) goes up, people buy less of it
(DEMAND).
Gas Prices/Gold/Milk etc.
Supply is inversely related to Demand due to scarcity

10. Intermediate Economics

11. Master’s In Economics
You don't need a Ph.D. in Economics to know that
jacking up prices leads fewer people to buy.
Those people include employers, who hire less labor when labor is made
artificially more expensive.
The Economic consequence of political largess is to
make labor artificially more expensive.

12. Let’s Face It
The Minimum Wage is just another Feel-Good Law
"It's tempting to think of higher minimum wages as an
anti-poverty weapon, but such an idea doesn't even
pass the smell test. After all, if higher minimum wages
could cure poverty, we could easily end worldwide
poverty simply by telling poor nations to legislate higher
minimum wages."
Walter Williams