Who Loves Minimum Wage Laws? Kiosk Makers

Source: American Institute for Economic Research
by Art Carden

“A fast-food ‘worker’ in Las Vegas, Nevada, where minimum wages are high enough to have teeth, is an ordering kiosk. One of the basic insights economics brings to any issue is that when things get more expensive, people search for substitutes. It’s true of steak and potatoes. It’s true of labor, as well. When lower-skill labor becomes more expensive, either through minimum wages, or work rules making it a dicey proposition to hire 14- and 15-year-olds (an experience we had with our older son this past summer), that gives people incentives to look around for substitutes. There are a lot of ways to skin a cat, and making low-skill labor more expensive induces people to use cat-skinning methods that use more capital and higher-skill labor.” (07/02/24)