Hat tip to Tim Fowler:
Kerrynomics
Stupid, Stupid Managers
Jul 28, 12:27 AM (Labor and Welfare)
Prof. Borjas quotes John Kerry disapprovingly, and for good reason (Kerry's words follow):
<<< It's no secret that good wages result in increased productivity, ultimately improving a firm's bottom line and economic development in their community. In fact, the last time Congress raised the minimum wage, our country experienced the strongest economic growth in decades. We saw lower unemployment, lower poverty rates, and lower inflation.
Small businesses get it. By raising the minimum wage, we're creating a prosperous future for our small businesses, their workers and their families. >>>
OK, never mind the insanely stupid idiocy in itself. Let me just ask this question… if "small business get it", why don't small businesses do it?
If higher wages are good for "a firm's bottom line" and this is "no secret" then why do managers need to be coerced, via federal law, to do this? Don't manager want to improve the bottom line? Are they stupid, evil or ignorant?
The point of laws is to get people to do things that they don't want to do, by using serious, credible threats. Libertarianism 101. Kerry flunks.
On the other hand, let's not forget that the minimum wage has a lot of other benefits. For once, it cures erectile dysfunction. It takes out the garbage. It helps you diet. It washes your dog. It takes and passes your exams for you. So let's do jump on the wagon of abject political populism without limits!
— Gabriel
gabriel.mihalache.name
borjas.typepad.com |
