The current minimum wage in the United States of America is $5.15 per hour and some believe it should be much higher. In fact the city of Chicago wanted to mandate that the employment wages could not go less than $10 per hour and some agreed. Recently the United States Congress and the United States Senate voted on a minimum-wage bill, which they did not pass.
Now each side of the aisle is blaming the other side for not allowing the minimum-wage law to pass. However from a free market standpoint the minimum wage should be zero dollars per hour. Yes, you heard me right the minimum wage should be zero. In other words there should be no minimum-wage law and that is the truth about minimum wage. With unemployment rates hovering between 4.6% and 5% we simply do not need a minimum-wage law.
If an employer does not pay the minimum wage in those employees will find work elsewhere and therefore competition will dictate price. Those employers who pay more dollars per hour will end up with the best workers and those that don’t will get the worst workers. Smart companies will want the best workers and therefore pay the most money and that solves that problem we do not need any more laws. Makes sense right? Now then consider all this in 2006 when discussing minimum wage theory.