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Minimum Wage

Switzerland Has No Minimum Wage

"Although liberals are usually gung ho for increasing the minimum wage, there was a sympathetic front page story in the July 29th San Francisco Chronicle about the plight of a local non-profit organization that will not be able to serve as many low-income minority youths if it has to pay a higher minimum wage. They are seeking some kind of exemption.

Does it not occur to these people that the very same thing happens when a minimum wage increase applies to profit-based employers? They too tend to hire fewer inexperienced young people when there is a minimum wage law.

This is not breaking news. This is what has been happening for generations in the United States and in other countries around the world.

One of the few countries without a minimum wage law is Switzerland, where the unemployment rate has been consistently less than 4 percent for years. Back in 2003, The Economist magazine reported that "Switzerland's unemployment neared a five-year high of 3.9% in February." The most recent issue shows the Swiss unemployment rate back to a more normal 3.2 percent."

Thomas Sowell reference:Is Thinking Obsolete?

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VIDEO LINK: The Truth About The Minimum Wage