[edanm]

Well, you could also look at it as a minimum wage being the government (trying to) force one group of people to subsidize poor people, namely, business owners. I'd much rather the government helps poor people directly, both so that it's on everyone and not only business owners, but also because it doesn't tamper with the market price, which causes all sorts of problems.

[bryanlarsen]

That's the point, it certainly does tamper with the market price. If somebody is receiving EITC & food stamps, they may be willing to accept a job paying $2 an hour because that $2 an hour will allow them to buy a little bit of meat to go with their rice & beans.

Without EITC & food stamps and other assistance $2/hour wouldn't cover food & rent even working 2 jobs, so they'd be forced to turn those jobs and look elsewhere, most likely to crime.

EITC & food stamps to the employed are a subsidy for the employer and distort the true market price for labour. Perhaps less than a minimum wage does.