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Minimum wage is predicated on a very stupid notion.

The notion is that employers are essentially Scrooge McDuck.

They've got a giant money bin, and that money bin is filled with all of their profits,

and if only we could pry that money bin open and hand all of that cash over to the workers,

they would all be better off.

There's only one problem. The minimum wage does not accomplish what it seeks to accomplish. Here's the deal. Here's how wages are set. It is reliant effectively on two factors. Factor number one is the price people are willing to pay for a product. You can't charge a bunch of money for labor if the product is going to be sold for a much lower price. Let's say you're selling a hamburger for a buck. If it costs you five bucks to make that burger, you're going to lose money. So what people are willing to pay for a product is one of the factors in determining the price of labor. The other factor in determining the price of labor is the market for labor. So, for example, if there are five people on planet Earth who can cook a hamburger,

you're not going to be able to pay them $5 an hour. It's going to be very, very expensive.

Because, again, high demand, low supply. Supply and demand are the name of the game when it comes

to setting wages and setting prices. And essentially, all a wage is a price for labor.

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