Many argue that minimum wage increases the freedom of low-skilled workers by increasing their wage, so they are able to purchase more goods and enjoy more free time. What most people forget, however, is not just that minimum wage interferes with the freedom of the employer to set the amount of money he is willing to pay for certain productivity, but also with the freedom of many people in the labor market.
Since every country has at the bottom of its social hierarchy low skilled and uneducated people for which the system is responsible for poor funding of schooling and a lack of available skill training, these people will now not be able to compete in the job market anymore. By setting a minimum wage, an employer will always choose the more productive and skilled person, because he is forced to pay at least a minimum wage. This means a large part of the low skilled people, who would have gotten a job by offering their services at a lower price, which is the only weapon they have to outcompete more productive people in getting a job, will now face unemployment.
So by trying to increase the freedom of low-skilled workers minimum wage actually denies them the freedom in getting a job in the first place. This is toxic in two ways. First, these people will be unemployed, and second, these people will not be able to become more productive and have a higher wage in the future because they can’t integrate themselves into the job market because the law prevents them to.
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