If you take away minimum wages, businesses can pay whatever small amount they want and keep the rest for profit. What about those who will only make $3.00 per hour?
If businesses can pay what they want, why do 90-95 percent of today’s workers in the U.S. make more than the minimum wage? The answer: supply and demand applies to employees as well as products. If a business doesn’t pay a person what he or she is worth, they go to a new employer or start their own business. In a libertarian society, with its expanding economy, such moves will be much easier than they are today.
Minimum wage laws actually destroy entry-level positions for the unskilled. Black economist Walter Williams believes that the minimum wage laws are the single most important factor in keeping young blacks out of the job market. The next time Congress considers raising the minimum wage, look in your newspaper for an estimate of the number of jobs that will be lost – potential training jobs for the disadvantaged.