Libertarian Party of Wisconsin
Press Secretary: Tim Krenz
January 16, 2024
FOR IMMEDIATE RELEASE
Libertarians Say Reality of Minimum Wage Hikes Hurts the Poor
“In reality, hiking up the legal minimum wage will end up with even more unemployed among poor and low-skilled people,” the Libertarian Party of Wisconsin says after releasing a new fact sheet on the subject this week. “Higher minimum wage laws, above the market price for labor, hurts the struggling people who can least afford it.”
Across the USA, politicians in both the Republican and Democratic parties have made higher minimum wage legislation an agenda priority, in this period of inflation. Yet, as open market and libertarian economists have warned before, minimum wages set too high cause employers to seek new ways to reduce labor costs.
To meet their bottom lines, businesses will usually lay off low-skilled employees, replacing them with increased investment in such things as automated technologies, at a lower long-term cost.
“Basic economics says that the low-skilled and poorer-class workers will lose their jobs with high, arbitrary minimum wages laws; if market forces do not control labor costs. Ill-informed politicians making populist but unwise decisions, like always, hurt the working poor more than helping them.”
The Libertarian Party of Wisconsin believes that individual decisions and personal choices, the meaning of the words “liberty and freedom,” help all classes of people more than the distorting tendency of government to engineer outcomes.
Such political-economic, and social-cultural manipulations by the government benefit the few and elite wealthy at the expense of the whole—particularly those who can afford it the least, the poor and working classes. For more on the Libertarian Party of Wisconsin and its platform, visit www.lpwi.org .
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