Tuesday, 13 August 2019

"Socialists imagine that the minimum wage increases wages paid. But the fact is that it increases, not the wage paid to a given worker, but the threshold. That is, it raises the bar on what employment is legally permissible." #QotD


"In an attempt to raise wages, the government imposes a minimum wage by law. Socialists imagine that this increases wages paid. But the fact is that it increases, not the wage paid to a given worker, but the threshold. That is, it raises the bar on what employment is legally permissible..."
    "A price fixing scheme like minimum wage is based on the idea that ... there is a magically right wage—nowadays called “living” ... And the government, of course, has the job to ensure it is paid. Of course, the government cannot guarantee any such thing....
    "On one side, there are people who go without work. They suffer the hardships of poverty .... On the other side, there are entrepreneurs who go without workers. ...
    "By fixing price, they think to fix the economic outcomes. But the reality is the opposite ... government intrusion into the market causes dis-coordination. There are people who lack for work, and at the same time companies who lack for workers. This is an extraordinary thing, for all that we take it for granted and accept it as if it were normal."

          ~ Keith Weiner, from his post 'Distortion Due to Minimum Wage Law'
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