Comment on A potentially great improvement to minimum wage laws to handle both economic efficiency as well as poverty concerns

Tue, 26 Jul 2011 00:29:20 GMT

Agreed. But does this problem not exist in even bigger measure when you have min wage and social security for those unemployed as a result of minimum wage. The social security cannot be equal to the min wage, since otherwise no one would work at min wage. However the social security would presumably be something like 2/3 of min wage to ensure that those who are unemployed are able to have some decent standard of living. And this per your argument would put the implicit tax rate of those earning minimum wage at 67%!

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