Reply To: Everybody against the minimum wage?


Paul Krugman, the self-anointed standard bearer for Keynesian economics, would vehemently disagree with your premise.

The minimum wage is a favorite of labor unions and big business alike. The former approves because it prices low-skilled (read: non-unionized) labor out of the market. The latter likes it because economies of scale make the compliance costs more onerous for smaller, upstart companies than they are for larger, more entrenched firm that can absorb the costs and increase their market share when the smaller competitors go out of business.