USCCB’s Misunderstanding of Economics
Acton Institute Powerblog

USCCB’s Misunderstanding of Economics

Today, the United States Conference of Catholic Bishops (USCCB) called for supporting just wage public policies. While the religious leaders genuinely concern for the poor, they display a deep lack of understanding of basic economic principles, namely the law of supply and demand. Supply and demand directly determines the price (wages) of labor. A price higher than the market price leads not to higher wages, but higher unemployment. Read this article for a more detailed discussion of the ill-effects of minimum wage laws.