Government mandates can never lead to sustainable wage increases. Higher levels of labor productivity can. And this critique of minimum wage laws is equally applicable to other labor market interventions, including overtime rules, family leave statutes, mandatory collective bargaining, and mandated healthcare benefits that likewise distort labor markets.They'll turn 'em into beggars 'cause they're easier to please...
It is therefore disheartening to observe that the dismal failures in the current labor market have led to renewed calls for further government intervention at both the federal and state levels. More specifically, progressives are calling for a two-pronged program that couples increased unemployment benefits with increased worker protections on all these key fronts. This agenda will only deepen the current malaise.
Wednesday, January 15, 2014
The Wages Of Politics
Why government control over wages doesn't work: