A short time ago I heard that the Greensboro City Council had recently increased the minimum salary for entry-level positions employing non-skilled labor to $15 an hour. What impresses me most is that no one on the City Council seems to understand the economic principle of supply and demand as it operates in the labor market. When you have excess supply of non-skilled labor looking for entry-level positions, the salary level or the hourly level tends to decrease. And when there is excess demand for non-skilled labor looking for entry-level positions, that’s when the labor rates tends to increase. The artificial adjustment of salary level to the $15-an-hour level is going to result, ultimately, in a smaller number of positions for these people over time. So, the unintended consequence of this liberal policy is going to actually be fewer opportunities for people that do not have skills.Read More
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Editor’s Note: When you have a majority of city councilmembers who don’t have jobs, this is what you get.