Costs more to hire people, fewer are hired . . .

Blithe Spirit

Donald J. Boudreaux, economics prof at George Mason U., answering letter writer who objected to his holding that raising minimum wage hurts low-wage people:

. . . let me test your instincts with a question posed by the economist Mark Perry:* Do you believe that imposing a tax on employers for every low-skilled worker that they hire would not reduce the number of low-skilled workers hired?

Do you believe that requiring employers to pay a tax of $2.85 per hour for every low-skilled worker on their payrolls would not prompt employers over time to employ fewer such workers?

Do you suppose that firms are so inattentive to their bottom lines or so unable to figure out how to operate profitably with fewer worker that such a tax – which would be about $5,700 annually for each and every low-skilled worker employed full-time – would not reduce low-skilled workers’ employment options?

If you do believe all…

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