Richard Epstein has published an accessible analysis and commentary on the adverse economic effects of President Obama’s proposed increase in the minimum wage. The crux of Epstein’s economic analysis: If proponents are correct that raising the minimum wage to $10.10 per hour will not cause unemployment, then their proposal is actually quite timid:
[S]ooner or later, the unemployment effects have to kick in, as liberal legislators implicitly acknowledge. Otherwise, why stop at a paltry $10.10 per hour? Why not $100?
One plausible answer is that raising the minimum wage beyond $10 per hour makes it likely that econometric studies conducted after the fact would detect the signal of unemployment from the noise of other market effects and regulations.