Minimum Wage Laws Create Unemployment

I recommend this gentleman’s blog, “Austrian Economics Addict.” He addresses a range of economics topics, some basic, some more involved. He consistently quotes authoritative sources, both historical experts and current media. His explanations are concise and easily understood. Please enjoy this example…Jeff

AUSTRIAN ECONOMICS ADDICT

MINIMUM WAGE RHETORIC

In the State of the Union address, the President called for the minimum wage to be raised to $9 an hour. Politicians who propose minimum wage laws are trying to gain the moral high ground on the “morally inferior” people who oppose these laws, they are not trying to help low wage low skill workers. These politicians think that making a law mandating employers pay their employees higher wages, will fool the public into thinking they are morally superior to their opponents. They prey on the emotion of the public and hope the public will not analyse what happens when wages are set higher than they would be under unhampered market conditions. Unfortunately the consequences of the legislation turn out to be different from the utopian promises that the public, and the media, so desperately want to believe can be delivered.

MINIMUM WAGE REALITY

Labor is supplied…

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About Necessary and Proper

Jeff believes in the Individual's ability to excel when liberty and freedom of choice are protected. Also believes in the Community's ability to take care of the vast majority of its own issues and needs when the federal government leaves the Community's resources and sphere of control alone. State and local choice produce better results than centralized federal control. https://necessaryandpropergovt.wordpress.com/
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One Response to Minimum Wage Laws Create Unemployment

  1. Jeff,
    Thanks for reblogging this article, and thanks for the compliment.

    Every issue is being fought in two distinctly different arenas. The political arena of illusion, and the economic arena of reality. Unfortunately the political arena is like watching a magic show. The magician tries to fool the audience into thinking the illusion is real, or the lie is the truth. In the economic arena the fight is between the interventions into the free market by the magicians, and the forces of economic reality that are constantly trying to correct these interventions.

    Here is a quote by Thomas Sowell I posted this week, “However dramatic or attractive a particular vision may be, ultimately everyone must live in the world of reality. To the extent that reality has been filtered to fit a vision, this filtered information is a misleading guide to making decisions in an unforgiving reality, to which we must all adjust because it is not going to adjust to us.”

    In ’07-’08 the Government and the Fed tried to keep the economic forces of the market from correcting the previous interventions by these two perpetrators. They used stimulus spending, regulations, taxes, Government “investment”, counterfeiting money, and artificially low interest rates to fix the problem that these policies created in the first place. It’s like trying to cure an alcoholic by giving him another drink. The eventual correction is going to have to take place at some point, whether it comes sooner, at a lower cost, or later at a higher cost, is up to economic reality. They can only put off the day of reckoning for so long.

    Thanks again
    austrianaddict

    Like

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