Saturday, September 09, 2006

Compulsory Unemployment...

The minimum wage that is. It doesn't create jobs, it only outlaws them. Lew explains:

The truth is that most (politicians) are economic ignoramuses, proposing bad law that not only fails to achieve its aims, but actually ends up spreading human suffering.

A case in point is the minimum wage. Once you strip away the rhetoric, a minimum wage law simply outlaws work below some state-mandated wage floor. Furthermore, a business that hires a person who is less productive than the minimum can be fined and shut down, and a worker who dares price his services too low will be forced to stop.

That is the long and short of it. Now, ask yourself: how can poor working people be made better off by laws that restrict their options? It is an absurdity. Poor people and young workers and the old and the disabled have few economic tools at their disposal. One of them is the freedom to lower the price of their labor. The minimum wage makes that impossible. If he wants to compete with more experienced or capable workers by lowering his price, he will be clubbed over the head.

To support the minimum wage is to wear your economic ignorance on your sleeve. Why should anyone who does be trusted with any power at all?


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