Milton Friedman on the minimum wage
27 passages for “the minimum wage”, 15 checked against the source. Page 1 of 3.
Full topic page: Wages, unions, and the minimum wage
The minimum wage is a legislated price above the price that would otherwise prevail for the labor of many teen-agers. Like every minimum price, it enhances the amount supplied and reduces the amount demanded, and so produces a surplus, in this case of unemployed teen-agers.
Blaming the ObstetricianColumn, 1979, Newsweek (June 4, 1979); reprinted in the Congressional Record, Extensions of Remarks, June 7, 1979, pp. 14007 to 14008, introduced by Representative G. William Whitehurst of Virginia, who describes it as “an article by Milton Friedman, which appeared in the June 4, 1979, issue of Newsweek”, Congressional Record, June 7, 1979, pp. 14007 to 14008The two-step rate is better than a one-step rate. At least, it would reduce the harm done by raising the minimum. But a no-step rate would be better than either.
Legislating UnemploymentColumn, 1972, Newsweek (1972; the issue current on June 28, 1972); reprinted in full in the Congressional Record, Extensions of Remarks, June 28, 1972, p. 23100, Congressional Record, June 28, 1972, p. 23100I am convinced that the minimum-wage law is the most anti-Negro law on our statute books—in its effect, not its intent.
Newsweek column of September 26, 1966Column, 1966, Newsweek (September 26, 1966), his first Newsweek column; quoted by Friedman himself in “Legislating Unemployment” (Newsweek, 1972), reprinted in the Congressional Record, Extensions of Remarks, June 28, 1972, p. 23100. Later collected in An Economist’s Protest (1972)., Congressional Record, June 28, 1972, p. 23100The true minimum-wage rate is zero—the amount that an unemployed person receives from his nonexistent employer. This minimum-wage rate will not be affected by the new law. Rather, the law will increase the number of persons who receive a wage rate of zero.
Legislating UnemploymentColumn, 1972, Newsweek (1972; the issue current on June 28, 1972); reprinted in full in the Congressional Record, Extensions of Remarks, June 28, 1972, p. 23100, Congressional Record, June 28, 1972, p. 23100It is a mystery why anyone would suppose that a person is better off unemployed at $2 an hour than voluntarily employed at $1.60.
Legislating UnemploymentColumn, 1972, Newsweek (1972; the issue current on June 28, 1972); reprinted in full in the Congressional Record, Extensions of Remarks, June 28, 1972, p. 23100, Congressional Record, June 28, 1972, p. 23100To avoid misunderstanding, let me emphasize that by using the term “natural” rate of unemployment, I do not mean to suggest that it is immutable and unchangeable. On the contrary, many of the market characteristics that determine its level are man-made and policy-made. In the United States, for example, legal minimum wage rates ( … ) and the strength of labor unions all make the natural rate of unemployment higher than it would otherwise be.
The Role of Monetary PolicyJournal article, 1968, American Economic Review 58, no. 1 (March 1968), pp. 1–17; reprinted in the House Banking and Currency Committee’s 1968 Compendium on Monetary Policy Guidelines and Federal Reserve Structure, pp. 214–224, p. 219 of the 1968 House reprintThe unions might be good for the people who are in the unions but it doesn't do a thing for the people who are unemployed. Because the union keeps down the number of jobs, it doesn't do a thing for them.
The situation today is different. Scattered studies have been brought together, additional studies made and some earlier studies re-evaluated. The evidence is now overwhelming that the unemployment predicted by economic analysis is confirmed by economic experience.
Legislating UnemploymentColumn, 1972, Newsweek (1972; the issue current on June 28, 1972); reprinted in full in the Congressional Record, Extensions of Remarks, June 28, 1972, p. 23100, Congressional Record, June 28, 1972, p. 23100All other alleged causes of inflation—trade union intransigence, greedy business corporations, spendthrift consumers, bad crops, harsh winters, OPEC cartels and so on—are either consequences of inflation, or excuses by Washington, or sources of temporary blips of inflation.
Why Inflation PersistsColumn, 1977, Newsweek (October 3, 1977); reprinted in full in the Congressional Record, Extensions of Remarks, September 29, 1977, p. 31684, introduced by Representative Parren J. Mitchell of Maryland, who gives it as appearing “in the October 3, 1977, issue of Newsweek”, Congressional Record, September 29, 1977, p. 31684Congress is at it again. Once more it is in the process of legislating an increase in unemployment. Of course, the legislation is not labeled “A Bill to Create Unemployment.” After all, Congress can teach big business a thing or two about deceptive labeling. No, the bill is labeled “A Bill to Increase the Minimum-Wage Rate.”
Legislating UnemploymentColumn, 1972, Newsweek (1972; the issue current on June 28, 1972); reprinted in full in the Congressional Record, Extensions of Remarks, June 28, 1972, p. 23100, Congressional Record, June 28, 1972, p. 23100