Wheaton, MD -- (SBWIRE) -- 06/19/2014 -- It is a fact that if the minimum wage in the state is higher than the minimum wage in the federal, there can be serious problems with the employers leading to major financial changes, budget cuts and most importantly layoffs. Milton Friedman, an American economist, writer and statistician concluded that “The rise in the legal minimum-wage rate is a monument to the power of superficial thinking”. Increasing the minimum wage might look good but only from the outer side. But when given a deeper thought, the increase does not look that good but downright ugly. “The Ten Unavoidable Problems with a Living Minimum Wage”, a book by Steve Baba discusses the unavoidable problems with the “Living” Minimum Wage as mentioned below:
1. Millions more unemployed even if the number of jobs remain constant.
2. High-cost labor will be used at a too-high wage, reducing total output.
3. Mandatory discrimination against the disadvantaged: nobody will hire disadvantaged labor.
4. In the long run, at a $10 or $15 minimum wage, more people will choose to become or stay minimum wage workers for life, reducing total output.
5. Job lock and few minimum wage job openings. People will be locked into whatever minimum wage jobs they find even if it’s the worst job for them.
6. Wasteful rent reeking job search costs.
7. Unethical rent seeking costs such as casting couch.
8. Knocking the first step off the ladder for people who need it the most.
9. Reduced job training for everyone.
10. Very inaccurate redistribution. Some of the poor gain, some of the poor lose, some of the rich gain and more of the rich lose.
No one would want a high minimum wage after analyzing these ten unavoidable problems as mentioned above. The non-technical language and the dialogue format in the book make it very easy to comprehend. The economic concepts in the book are presented in a Socratic discussion with a labor activist at McDonald’s. The book is currently available on Amazon and can be downloaded for free between June 16th and June 20th 2014 after which the book can be bought at just $2.99 only.
To order a copy today visit http://www.amazon.com/Unavoidable-Problems-Minimum-Millions-Unemployed-ebook/dp/B00KYDDLP4
About Steve Baba
Steve Baba holds a Ph.D. in Economics from the University of Maryland at College Park. Steve has taught economics in the United States, Europe and Asia. Steve’s book Ten Unavoidable Problems with a “Living” Minimum Wage is out now on Amazon.
Steve Baba – Director, EEENI Inc.
Address: 2715 University Blvd. Wheaton, MD 20902