Economists recognize that the economy suffers when politicians interfere with the natural balance between supply and demand. Simply put, when the price of butter is too high, people buy less butter. When the workforce prices itself too high, employers will react by conducting business with less of a workforce. The result, then, is less business activity and increased unemployment. The minimum wage also hurts small entrepreneurs.
Small entrepreneurs take enormous risks.
Each day, they struggle to make a minimal profit. The minimum wage acts as a tax on labor. If the minimum wage prices labor beyond small businesses' ability to pay, they will not hire new employees. Small entrepreneurs will be unable to expand operations or start up new businesses.