Originally Posted by tyler129

Since economics is not your area of study, I'll make it easy for you to understand. The demand for jobs by employees meets the supply of jobs by employee in an efficient job market.

The minimum wage, however, forces the employees who wants to work for less than the minimum wage, not to work and also forces the employers who are willing to hire for less than minimum wage not to hire (perhaps the business owner might go out of business if they pay minimum wage and therefore, doesn't make business sense for him to hire).

The minimum wage creates a dead weight within job demand & supply and higher the wage rate, bigger the dead weight.

If this is the case, minimum wage forces those who wants to work for less than minimum wage to go unemployed and the unemployment rate rises, while at the same time, the employer can't receive the man-power that he needs, therefore, the minimum wage (or higher wage) forces a more inefficient and less productive economy.

Micro-economics 101.