Top Pro & Con Arguments

Con

The free market should determine minimum wages, not the federal government.

A survey by the Small Business Network found that 82% of small businesses agreed that “the government should not be setting wage rates.” [74] According to Per Bylund, PhD, Research Professor at Baylor University, the federal minimum wage “disrupts the balance of the market and prohibits the creation of new jobs.” Bylund stated that the free market should determine wages based on the value of work produced so employers can hire the needed number of workers at wage levels that make sense for their businesses. [75] According to Mark J. Perry, PhD, of the American Enterprise Institute, government-mandated minimum wages “are always arbitrary and almost never based on any sound economic/cost-benefit analysis… [I]n contrast market-determined wages reflect supply and demand conditions that are specific to local market conditions and vary widely by geographic region and by industry.” Perry said market-determined wages result in more employment opportunities for unskilled workers, increased profits for companies, and lower prices for the consumer. [76]

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