A minimum wage also gives businesses incentives to use fewer employees and to look for less expensive labor substitutes such as automation through technology. and, the minimum wage can force many small companies who operate on thin profit margins out of business.
Thus, the minimum wage, an artificial wage subsidy for unskilled workers, means job losses. This is a commonly accepted view by most economic experts. According to a 1978 article in American Economic Review, 90% of the economists surveyed agreed that the minimum wage increases unemployment among low-skilled workers (Kearl, J.R., et al.
(1979). During troubling economic times like today, its better to have workers employed at the rate the market will bear than not at all.
Kearl, J.R., et al. (1979). A confusion of economists? American Economic Review 69: 28-37.
Should the minimum wage be abolished (i.e. reduced to $0.00)? BalancedPolitics.org. http://www.balancedpolitics.org/minimum_wage.htm.