- While legislative bodies have the power to order wage increases, they have not as of yet found a way to order commensurate increases in worker productivity that make the worker’s output worth the higher wage.
- Further, while Congress can legislate the wage at which labor transactions occur, it cannot require that the transaction actually be made, and the worker hired.
Exactly. Wage controls are sold on the notion that they force employers to pay their employees more, but the law doesn't do that. It just prohibits them from paying less.
If an employees labor isn't worth the new minimum, their not allowed to work. They go from being paid a low wage to unemployment.