MIG's Tournament: On balance, the minimum wage is harmful to society (take 2)

Thank you, logic, for agreeing to debate this. It is a pleasure to break away from the usual debates on religion that I normally do. I will show that on balance, the minimum wage is harmful to society as a whole.This is take 2 because I was on vacation and forfeited the last debate. Thank you, MIG and logic for letting the redo happen. 1. Teenage unemploymentMinimum wage hurts teenagers that are trying to find jobs. The Employment Policies Institute notes: "One of the prime reasons for this drastic employment drought is the mandated wage hikes that policymakers have forced on small businesses. Economic research has shown time and again that increasing the minimum wage destroys jobs for low-skilled workers while doing little to address poverty." (http://epionline.org.........;)The reason is simple: When the minimum wage gets a boost, employers cut down on hiring teens who normally fill lower-priority positions (i.e., taking out the trash). Nearly half of all minimum wage earners are teenagers or young people still linving with their parents. For every 10% increase in the minimum wage, there was a 4.6-9.0 percent decline in teen unemployment. (http://epionline.org.........;)We can see the effects on this graph provided by Ron-Paul in a similar debate (http://www.debate.org.........;): 2. Increase in pricesIncrease in minimum wage always results in higher prices. Because of the high price, many leftist organizations have argued to increase the minimum wage--some, like the Socialist Party USA have argued that they want the minimum wage to be $15. However, the logic behind that is seriously flawed. "In a free market, demand is always a function of price: the higher the price, the lower the demand. What may surprise most politicians is that these rules apply equally to both prices and wages. When employers evaluate their labor and capital needs, cost is a primary factor. When the cost of hiring low-skilled workers moves higher, jobs are lost. Despite this, minimum wage hikes, like the one set to take effect later this month, are always seen as an act of governmental benevolence. Nothing could be further from the truth." (http://www.lewrockwell.com...;)When a worker who is forced to be paid $7/hour but works at quality rate of only $3/hour, companies lose $3 every hour that worker works. The result is an increase in overal unemployment. "The federal increase from $4.25 to $5.15 costs California families an average of $133 more per year for the goods they normally purchase. Since higher-income families spend more, they would pay more in absolute terms than lower-income families: up to $234 per year compared to $84 per year." (Quoted in Ron-Paul vs. RoyalDalphinhttp://www.debate.org.........;) 3. Overal unemployment increases The graph above charts unemployment vs. minimum wage. The reason for this is very simple: Because with minimum wage, companies have to pay more employees meaning that they have to layout workers to stay on budget.4. Increase in povertyMinimum wage can be directly correlated to the increase in poverty. The NELP suggests that increase in minimum wage helps lift Americans out of poverty. However, upon closer inspection, this claim cannot pass the test of rigorous research. CNN reports:"[R]esearch published last year in the Southern Economic Journal, a study funded in party by the Employment Policies Institute, found no evidence that these state minimum wage increases reduce poverty rates. The authors, from Cornell and American universities, suggest that some wage gains were flowing to higher-income families rather then the intended beneficiaries.""There is even more important effect to account for:a decrease in employers' demand for the less-skilled and less-experienced. Those employees who receive a minimum wage increase may be better off, but those who lose their job because they're now more expensive to employ are most certainly worse off.""Research from economist David Neumark, Mark Schweitzer and William Wascher found a higher minimum wage results in a net increase in proportions of families who are poor or near-poverty -- meaning that the "losers" from a minimum wage increase outnumbers tthe 'winners.'"http://www.cnn.com.........Conclusion:Minimum wage is certainly maximum stupidity. "The way it is supposed to work is that people do not choose to start families until they can earn enough to support them. Lower-wage jobs enable workers to eventually acquire the skills necessary to earn wages high enough to support a family. Does anyone really think a kid with a paper route should earn a wage high enough to support a family?" http://www.lewrockwell.com.........;