Dunkelberg: Policies in pursuit of "making life fairer" are not always good for the economy
President Obama continues to push for a 40 percent increase in the
federal minimum wage. But the logic that an increase will help workers
and the economy is flawed, says NFIB Chief Economist Bill Dunkelberg.
When labor costs increase, businesses must compensate, often by reducing
their labor force. The hiring rate for young, unskilled workers will
decline, and on-the-job training will be denied. Such policies to make
life “more fair” for everyone simply do not work. To watch more Your
Bottom Line videos on the economy, visit https://www.nfib.com/YBL.
