> The first thing that happens, for example, when a law is passed that no one shall be paid less than $106 for a forty-hour week is that no one who is not worth

> The first thing that happens, for example, when a law is passed that no one shall be paid less than $106 for a forty-hour week is that no one who is not worth $106 a week to an employer will be employed at all. > There is plenty of empirical evidence against this from countries that actually have introduced minimum wage laws. Few employers run at a loss for very long. So, if they pay $y for something that is only worth $x, where y > x, they make up the difference somewhere. The four options are the salary for other employees, money for supplies, profits, and price of goods/services sold. Customers will walk if they're not getting value. Service providers will sell to the highest bidder. Other employees will go elsewhere, but not all employees are portable. That leaves stranded employees and employers.