Policy Documents

Raising the Minimum Wage Is Not the Answer

Michael D. Tanner –
September 30, 2013

This post at CATO @ Liberty asserts that a family collecting welfare benefits from seven common programs – Temporary assistance for Needy Families (TANF), food stamps, Medicaid, WIC, public housing assistance, utilities assistance (LIHEAP) and free commodities – could receive more than what a minimum wage job would pay in 35 states. Critics responded: so raise the minimum wage.

But that won't work.  When the government forces businesses to raise the wage, it results in fewer jobs.