Feb 10, 2021
The Congressional Budget Office has come out with a study of a bill in Congress to raise the minimum wage to $15 an hour that forecasts some good outcomes (reduced poverty) and some bad outcomes (increased unemployment). But forecasts are usually very inaccurate and when governments try to force free markets to generate politically determined outcomes, the unintended consequences are often worse than the expected benefits of the policy. If the minimum wage was the cause of people’s poverty than raising it would alleviate the problem. In this podcast, the Edifice of Trust host, Victor Bolles looks at the fact that low wages are not the cause of the problem but the result of the problem.