Where Have All the Gas Pumpers Gone?

In a free market, demand is always a function of price: the higher the price, the lower the demand. What may surprise most politicians is that these rules apply equally to both prices and wages. When employers evaluate their labor and capital needs, cost is a primary factor. When the cost of hiring low-skilled workers moves higher, jobs are lost. Despite this, minimum wage hikes, like the one set to take effect later this month, are always seen as an act of governmental benevolence.

Nothing could be further from the truth.

Peter Schiff offers some basic economic advice on the minimum wage to our politicians who have taken it upon themselves to mandate labor prices in an economy which has fallen on hard times due to their meddling policies.