Picture: ISTOCK
Picture: ISTOCK

With reference to Tim Harford’s column (October 7), he is correct in saying that “it is dangerous to view the minimum wage as a free lunch”.

Here in SA, the Treasury warned us that we would lose 750,000 jobs even though our minimum wage is incredibly low and far less than the federal minimum wage in the US.

Indeed, we are losing jobs at an enormous rate (admittedly, not only because of the minimum wage). Today, on the expanded definition, we have more than 10.5-million people without jobs and this figure is set to grow. We know that minimum wages do destroy jobs for those with very low skills and we also know we have not had any rise in productivity since the introduction of the minimum wage.

Engineering of this nature bodes ill for the future of our economy.

Michael Bagraim, MP
Via e-mail

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