The underlying issue of why people support raising the minimum wage is due to a misconception. Sowell (2011) explains the zero-sum fallacy. Where in a transaction, someone is making a gain while someone else is losing. When it comes to minimum wage it is believed that employees are on the losing side of the transaction. It is seen that if the minimum wage is raised, the transaction between employees and employers become equal. Sowell goes on to explain why this is not the case. If there was always a losing party, transactions would not take place in the first place. The reason why transactions take place is that of mutual benefits and agreed terms. Each side of a transaction is sacrificing one thing to gain something else. If a party was significantly
