Become a digitalPLUS subscriber. 99¢ for 4 weeks.
NewsOpinionReaders Respond

Minimum wage hike would increase poverty

Business

While minimum wage laws may be becoming popular with power brokers in the Maryland legislature, they remain an example of a well-intentioned piece of public policy that will hurt Maryland workers far more than any benefits it may create ("Miller joins voices urging minimum wage hike Sept. 5).

Minimum wage laws attempt to create a minimum standard of living to protect the health and well-being of employees by mandating a base level of pay that employers are required to pay certain covered employees. Supporters of these laws say they protect workers from exploitation by employers and reduce poverty.

In reality, these artificial wage hikes increase unemployment and poverty. When minimum wage laws require businesses to pay their workers higher wages, in order to maintain profitability businesses need to make adjustments elsewhere to offset the increased costs. These cuts often lead to reduced hiring, fewer work hours for employees, diminished benefits for employees and higher prices for consumers.

Minimum wage laws are not the most effective method for addressing poverty in Maryland. An increase in the state's Earned Income Tax Credit would be far more effective while having less of a negative effect on the state's economy.

Matthew Glans, Chicago, Ill.

The writer is senior policy analyst at The Heartland Institute.

Copyright © 2014, The Baltimore Sun
Related Content
Business
  • Do we reward hard work or not? [Letter]
    Do we reward hard work or not? [Letter]

    In regard to Dan Rodricks' recent column on the minimum wage and tipped workers ("Questioning wage law built on the kindness of strangers," April 18), I was following along with Dan's arguments up until his last sentence, "and I thought that in America we like to see...

  • Minimum wage delay a rotten deal for workers [Letter]
    Minimum wage delay a rotten deal for workers [Letter]

    Why does the average person have to wait until 2018 for a raise to $10.10 an hour, but the people running Maryland can give themselves a raise in two seconds flat ("Wage hike, new marijuana bills OK'd as session ends," April 8)?

Comments
Loading