Abstract
The usual explanation among economists why minimum wage laws are so popular is that the general populace is ignorant of the unemployment effects of a minimum wage law. The layman is assumed to believe in effect that the demand for labor is perfectly inelastic and thus any increase in the real wage is unambiguously beneficial for every individual in the labor force. The policy problem then is one of ferreting out such ignorance. Hence, the solution: Economists should devote more efforts to educating the public about the law of demand, particularly as it relates to labor markets. The problem thus is essentially one that can be solved by effective economic education. Presumably, once the public is made aware of the pernicious employment effects of minimum wage laws, they will demand that they be abolished.1
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