Back in June 2008, I predicted the Law of Unintended Consequences would assert itself in regards to the increase of the minimum wage.
Time has proven me right.
A sign of those unintended consequences can be seen in a memo from an employer to his employees, explaining why he's cut back on their hours across the board even though he wishes he could give them all the hours they'd like.
This is yet another example of how government intervention in the economy has a negative effect that far outweighs any possible positive effect that was the justification for such intervention. Something as simple as raising the minimum wage 40% over three years can turn a money-making business into a money-losing business is very short order. I don't of any business (other than government) that can absorb a 40% increase in labor costs and not suffer the consequences.
