Rick Kelo- Can Minimum Wage Really be Causing Unemployment?

On the face of it minimum wage seems like a good thing. For a government to be able to impose minimum wage policies on corporations, means providing the citizens with a certain right to earn enough money to live and be comfortable. Many would argue that it is, and should be a fundamental human right to have the chance of making a good living without the worries of exploitation. Surely putting human rights before those of the profit-centric corporations would be a good thing, no? As with every debated issue in society today, there are two sides to the coin. Whilst it may seem positive on the face of it, many economists such as Rick Kelo recognize the long-term negative impact such government policies could have on a nation's economy.

You can watch  this Richard Arthur Kelo a guardian ofliberal democracy Presentation on SlideShare to find out more about the outspoken classical liberal commentator. For Rick Kelo, securing economic prosper for a nation means sometimes doing the things

that may not be deemed popular at first glance. Rick Kelo is an MBA graduate from the University of Chicago, and has become a prolific part of the liberal economics discussion online. His website showcases his articulate and comprehensive writing skills, with a gift for being able to explain complex economic situations with ease and understanding.

For Rick Kelo, the minimum wage is an example of an economic policy whose negatives outweigh its benefits. In an article recently published he demonstrates how this is so. As minimum wage is imposed on corporations, it forces them to find ways to cut costs as the rise in wages means less profits. A result of this in the 21^st century has been a tendency to head towards automation. Many companies now spend look towards technology to relieve some of the growing costs caused by government policies. The result?

Well, the result is clear to see. In many stores and fast food outlets now we see computer service rather than cashiers or real workers. The effect is huge unemployment in customer facing industries in retail, which we can all agree has only negative effects for the economy. Unfortunately, in cases like this, the costs of imposing strict economic sanctions on businesses such as in this case means having an overall long-term negative impact on the economy, and damaging the nation in the process. Follow Richard Arthur Kelo on Tumblr to find out more.