Compulsory unemployment is achieved indirectly through minimum wage laws. On the free market, everyone’s wage tends to be set at his discounted marginal value productivity. A minimum wage law means that those whose DMVP is below the legal minimum are prevented from working. The worker was willing to take the job, and the employer to hire him. But the decree of the State prevents this hiring from taking place. Compulsory unemployment thus removes the competition of marginal workers and raises the wage rates of the other workers remaining. Thus, while the announced aim of a minimum wage law is to improve the incomes of the marginal workers, the actual effect is precisely the reverse—it is to render them unemployable at legal wage rates. The higher the minimum wage rate relative to free-market rates, the greater the resulting unemployment.
— Murray Rothbard, Power & Market (via laliberty)
-
co-liber reblogged this from laliberty
-
cognitiveresonance likes this
-
theowlscontinuethechase reblogged this from amagi-nation
-
theowlscontinuethechase likes this
-
timlebsack likes this
-
spitfirebreathesmoke reblogged this from amagi-nation
-
spitfirebreathesmoke likes this
-
e-temen-an-ki reblogged this from theanarchocapitalist
-
e-temen-an-ki likes this
-
damonwells likes this
-
katherinemayfair likes this
-
theanarchocapitalist reblogged this from amagi-nation
-
the-altar likes this
-
amagi-nation reblogged this from laliberty
-
neongreenpolish likes this
-
kyledouglasriley likes this
-
libertariancontrarian likes this
-
belmir likes this
-
ponderousinthought reblogged this from laliberty
-
therealashleydionne likes this
-
charlotteannej reblogged this from welcometocindyworld
-
reborn-pure reblogged this from welcometocindyworld
-
welcometocindyworld reblogged this from laliberty
-
deadeyedix likes this
-
carolinamonstr reblogged this from laliberty
-
thecriticlaughs likes this
-
lifeispandemic likes this
-
stuff-that-irks-me reblogged this from wherelibertydwells
-
stuff-that-irks-me likes this
-
jillithelibertarian likes this
-
wherelibertydwells reblogged this from laliberty
-
tomasmg reblogged this from laliberty
-
libertariantaoist reblogged this from laliberty
-
biognosis likes this
-
aboveauthority reblogged this from laliberty
-
laliberty reblogged this from laliberty
-
quesodemono reblogged this from brmurray
-
brmurray reblogged this from laliberty
-
brmurray likes this
-
thisbrilliantsky likes this
-
gavinvz likes this
-
voldemeg likes this
-
jmsouthe reblogged this from laliberty
-
jmsouthe likes this
-
sassafras-jones likes this
-
kateinva reblogged this from robotbutler
-
jippidyjack likes this
-
eastling likes this
-
alzati-prometeo likes this
-
roxygen likes this
- Show more notes
Short URL for this post: http://tmblr.co/ZSqJtwQZh6Rr
