Monday, February 24, 2014

Minimum Wage Hype | Hoover Institution

Minimum Wage Hype | Hoover Institution: "One of the essential tenets of the system of laissez-faire is that all proposed legislation should be presumed unwise until it is shown otherwise. There are two grounds for this assumption. First, legislation costs money to implement. Second, all too often it interferes with the operation of competitive markets, which generally offer the best long-term path to prosperity.

By this standard, all minimum wage laws should be regarded as mistakes. The point is especially urgent when labor markets are themselves under stress. The White House and the CBO fall into deadly error when they ignore the complications that work against all comprehensive systems of legislation. There is no good reason to believe that even the intended consequences of the minimum wage increase will come to pass. But when the unintended consequences are taken into account, the new legislative program will only slow down a weak economic recovery that already has left far too many people behind.

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But hey.  Who believes in the free market that has developed over thousands of years of human behavior.  Gosh, why should we believe that?



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