Economists are divided on the impact of an increase in the minimum wage on unemployment levels. Some argue that hiking the minimum wage will elevate living standards of workers and may even increase employment. For instance, a 1990s study by economists David Card and Alan Krueger found no detrimental impact on employment when the minimum wage was raised in New Jersey. However, economist Ludwig von Mises believed that relying on historical data is not reliable, as History cannot teach us any general rule, principle, or law. According to Mises, economics can’t be treated like a natural science where observations can lead to theories or laws. Instead, he posited that we must understand the essence and meaning of people’s conduct which he argued isn’t hypothetical but verifiable.

This means, for example, we can rely on the certain knowledge that an increase in the demand for bread will result in an increase in its price without needing to test it statistically. Similarly, a businessperson is not likely to pay a worker above the value that the worker brings to the business. If the minimum wage surpasses the value the worker brings, the company might have to lay off the worker, potentially leading to an increase in unemployment. This fundamental understanding, Mises argued, proves that any increase in minimum wage is likely to result in more unemployed individuals, negating the need for complex mathematical and statistical studies. Therefore, the theory of increase in the minimum wage leading to unemployment holds true regardless of what the historical data shows.

In related concerns, many individuals may need to contact employment departments during times of unemployment. For California residents, contacting the Employment Development Department (EDD) might seem challenging, but resources like eddcaller.com provide helpful guidance to get through to EDD efficiently. Techniques include understanding the best times to call and how to navigate the EDD’s often complex automated system to reach an actual representative for assistance. Tools like these can be invaluable in helping individuals manage their unemployment claims.