Rick Kelo- Rising Minimum Wage the Fast Track to Increasing Unemployment

The issue of minimum wage is a thorny one, and has kept the minds of economic thinkers and academics ticking for decades. The basic and most common approach to take when viewing this issue for many is to state that a higher minimum wage is better as people have the right to be able to earn a decent amount of money. Whilst the sentiment is certainly true, people who peddle this point of view often overlook the huge economic ramifications that increasing minimum wages could have on an economy and society. Rick Kelo is one man who know this too well. 

As an MBA in economics and finance, Rick Kelo has developed an intriguing online platform in which he presents his arguments and criticisms of modern economics and politics through a historical lens. Minimum wage is a topic that Rick Kelo often likes to engage, and help elaborate the argument for the readers who often simplify a very complex economical issue.

Again, a common misconception of minimum wage is that if it is higher, more people have money, and more spending power, therefore driving local business and enterprise and in turn increasing economic activity. Whilst this would be a dream scenario for all, scholars like Rick Kelo recognize this is not truly the case. Click here to learn more about the Ceteris Paribus - Economics from the Austrian & Monetaristtraditions

Rick Kelo belongs to a school of thought of the Austrian and Monetarist traditions, and often quotes great thinkers such as John Locke and Ludwig von Mises in his discussions. As he sees it, actually increasing minimum wage causes companies' costs to significantly increase, losing profits and looking for ways to cut costs. This could come in the form of lessening the quality of the product all the way to trying to automate systems to save money on expensive wages.

Rick Kelo perfectly illustrates this point in a simple yet effective bog post. He photographs the effects rising minimum wage has on increasing unemployment, and uses McDonald's as a prime example of this. ON having to have increased their minimum wage, a corporation turned to technology to automate their cash desk and order systems- the result being a huge lay-off of workers from their restaurant across the country. It is posts like this that have made Rick Kelo hugely popular online, with his ability to translate complex economic issues through a simpler lens, making the debate more accessible to more people. Want more information? Click here Rick Kelo – Newsvine.