I recently watched this video of Milton Friedman explaining why he thinks that raising the minimum wage actually hurts poor people:
Okay, I do not understand this at all. Why would employers start hiring over-qualified employees, just because the minimum wage is higher? If the minimum was $15 an hour, would McDonald's start requiring a BA to work there? This just doesn't make any sense to me. The requirements for a job don't change just because the wage does.
However, this argument seems to be good for convincing some people, and Milton Friedman is a renowned economist, so...what am I missing here? Can anybody explain this to me?
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| I AGREE |
Okay, I do not understand this at all. Why would employers start hiring over-qualified employees, just because the minimum wage is higher? If the minimum was $15 an hour, would McDonald's start requiring a BA to work there? This just doesn't make any sense to me. The requirements for a job don't change just because the wage does.
However, this argument seems to be good for convincing some people, and Milton Friedman is a renowned economist, so...what am I missing here? Can anybody explain this to me?
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