Does Minimum Wage Legislation Causes

175 Words1 Pages
After all, why search for a job when the government can foot your bills? Minimum wage legislation is also another cause of unemployment. By enacting the minimum wage legislation, the government made it almost impossible for small and medium size businesses to hire qualified persons. It is irrational to hire employees when your business cannot pay their salaries. High salaries is against business operation principle of maintaining the lowest possible level of expenditure to maximize profits. Surprisingly, discrimination is still among the factors causing unemployment. Some employers discriminate job seekers based on their race, religion, age, residence, physique, gender, or even political ideologies. Landy (2005) claims, “Hundreds of thousands