Minimum wages distort the normal supply and demand curve of labor statistics. They are a measure of control with two edges. Economic theories clearly show that free markets will eventually achieve a healthy equilibrium beneficial to both sides of the equation. However, that model is only true in a perfect world ─ a world where everyone is perfectly honest and there is no tendency to abuse the weaker sectors of society.
Among Catholics and many other Christians, minimum wages are a mater of compassion and social justice. The Catholic Social Doctrine has been codified to express that the government must "defend and promote the common good of civil society, its citizens, and intermediate bodies" (1910), because "the state has a responsibility for its citizens' well being" (2371). It is self evident that the main reason for any government to exist is to abide by their obligation to make sure that citizens live in secured and stable social groups abiding by the rule of law. That is what social justice is all about - according to the American Declaration of Independence, the role of government being the preservation of "Life, Liberty, and the pursuit of Happiness".
On the other hand, critics of minimum wage laws often presuppose that the greater the government intrusion into all facets of human life, economic activity included, worse is the condition of citizens losing their freedom and independence, as well as their chances in the pursuit of happiness. Furthermore, Libertarians hold the idea that almost any kind of contract entered freely between responsible adults is legitimate, legally binding, and should not be subject to government regulation.
However, this debate is not resolved as a black or white alternative because of its many shades and colors. It is thus a matter of common sense. First and foremost, we should be clear about the fact that minimum wages have a function to limit abuse and to guarantee a minimum subsistence level.
Why should it be set at a minimum subsistence level? Because increasing the minimum wage beyond the basic needs of citizens would have two principal effects on low-wage workers. It is true that most of them would receive higher pay that would increase their family’s income, and some of those families would see their income rise above the federal poverty threshold. But it is also true that a considerable number of jobs for low-wage workers would certainly be eliminated, the income of most workers who became jobless will fall substantially -up to the point to be forced to ask for wellfare subsidies-, and the share of low-wage workers who are employed will also fall. In the United States, more than half a million jobs will be lost because President Obama is trying to pass a law to increase the federal minimum wage from its current rate of $7.25 per hour to $10.10 per hour. In other words, the real effects of such a large minimum-wage increase are negative: they'll hurt businesses and reduce their chances against foreign competitors, they'll raise prices and they ultimately are counterproductive for the working poor, as they can lead to high unemployment. Look at this chart on minimum wages and unemployment in the United States.
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El espectáculo populista que estamos presenciando entre Republicanos y Demócratas en Estados Unidos es una pugna irracional que divide y polariza al país, que ahora parece guiado por caudillos prepotentes que desafían a sus adversarios políticos como si fueran enemigos irreconciliables. Presenciamos con asombro una interminable campaña política en la que no se observa esfuerzo alguno de colaboración sino el turbio propósito de demonizar al contrario y calificarlo de culpable de todos los males que sufre el país .