Some politicians fighting for workers' rights have advocated the imposition of a minimum wage, the limiting of working hours and collective bargaining power for employees.
Such politicians may be motivated by good intentions, but if they are successful, they will do more harm than good.
Those who argue that a minimum wage will reduce unemployment, are incorrect. In fact, it will lead to an increase in the rate of unemployment.
Take, for example, a fast food chain like McDonald's, where some people seeking work are more skilful than others.
A Form Five graduate who has worked in fast food restaurants before has an advantage over a worker over the age of 40, who never got beyond Form Three level and who has no work experience in the fast food industry.
The middle-aged worker is in greater need of the job, because the younger person will find it easier to get work elsewhere.
If there was a minimum wage, the McDonald's manager would choose the younger candidate, because he would rather have the skilled worker for the wage he is forced to pay.
