Minimum Wage And Its Effects On Small Business

Content

A Hearing Before the Subcommittee on Workforce,
Empowerment, and Government Programs

Sixty-five years ago, pharmacies stocked mercury, heroin, and radon as remedies; few people believed that a fungus-based drug called penicillin could cure anything; and the minimum wage was considered our most effective anti-poverty policy. Doctors prescribing mercury today would lose their license, yet the popularity of similarly counterproductive minimum wage increases endures—despite the existence of proven and successful means of addressing poverty.

The impending national elections, combined with the superficial appeal of a minimum wage increase, has led a number of vocal pundits, policymakers, and so-called “experts” to clamor for an increase in the minimum wage. The proposed increase will not only fail to reduce poverty, but it will also decrease employment opportunities for low-skill Americans—denying many of them the opportunity to stay in the workforce and learn the skills necessary to improve their lives.