In 1948, white teenage unemployment in the U.S. was 10.2%, while black teenage unemployment was only 9.4%. This was when the effective minimum wage rate was much lower. Today, in a much less discriminatory epoch, but where teenagers are “protected” by a more stringent minimum wage law, white youth unemployment is 13.9%, while black youth unemployment is an astounding and shameful 33.5%. —Walter Block, The Case for Discrimination, 2010
A young drug dealer once asked for a job on a public housing project in San Francisco. He approached Chris Albert, president of Willie Electric Company, hoping to get out of drugs and into legitimate work.
Unfortunately, because of the high wages dictated by the minimum wage law, the contractor couldn’t afford to take a chance on an unskilled man with no job record. The young man came back two days later and begged to be employed at a lower wage. “I won’t tell the law,” he promised.
“I want to make a better life for me and for my mom, and for my little sisters and brothers.” Unwilling to risk legal problems, the contractor reluctantly refused.
Two days later the young man was shot and killed. Maybe he’d be alive today if the minimum wage laws had not prevented him from working instead of being on the streets.
—Mary Ruwart, Healing Our World
A businessman’s success depends on his intelligence, his knowledge, his productive ability, his economic judgment—and on the voluntary agreement of all those he deals with: his customers, his suppliers, his employees, his creditors or investors. A bureaucrat’s success depends on his political pull. A businessman cannot force you to buy his product; if he makes a mistake, he suffers the consequences; if he fails, he takes the loss. A bureaucrat forces you to obey his decisions, whether you agree with him or not—and the more advanced the stage of a country’s statism, the wider and more discretionary the powers wielded by a bureaucrat. If he makes a mistake, you suffer the consequences; if he fails, he passes the loss on to you, in the form of heavier taxes.
A businessman cannot force you to work for him or to accept the wages he offers; you are free to seek employment elsewhere and to accept a better offer, if you can find it. (Remember, in this context, that jobs do not exist “in nature,” that they do not grow on trees, that someone has to create the job you need, and that that someone, the businessman, will go out of business if he pays you more than the market permits him to pay you.) A bureaucrat can force you to work for him, when he achieves the totalitarian power he seeks; he can force you to accept any payment he offers—or none, as witness the forced labor camps in the countries of full statism.
The businessman’s tool is values; the bureaucrat’s tool is fear.
—Ayn Rand
A businessman’s success depends on his intelligence, his knowledge, his productive ability, his economic judgment—and on the voluntary agreement of all those he deals with: his customers, his suppliers, his employees, his creditors or investors. A bureaucrat’s success depends on his political pull. A businessman cannot force you to buy his product; if he makes a mistake, he suffers the consequences; if he fails, he takes the loss. A bureaucrat forces you to obey his decisions, whether you agree with him or not—and the more advanced the stage of a country’s statism, the wider and more discretionary the powers wielded by a bureaucrat. If he makes a mistake, you suffer the consequences; if he fails, he passes the loss on to you, in the form of heavier taxes.
A businessman cannot force you to work for him or to accept the wages he offers; you are free to seek employment elsewhere and to accept a better offer, if you can find it. (Remember, in this context, that jobs do not exist “in nature,” that they do not grow on trees, that someone has to create the job you need, and that that someone, the businessman, will go out of business if he pays you more than the market permits him to pay you.) A bureaucrat can force you to work for him, when he achieves the totalitarian power he seeks; he can force you to accept any payment he offers—or none, as witness the forced labor camps in the countries of full statism.
The businessman’s tool is values; the bureaucrat’s tool is fear.
—Ayn Rand
What protectionism teaches us is to do to ourselves in times of peace what enemies seek to do to us in time of war. —Henry George
Government handouts actually perpetuate poverty by creating a culture of dependency. As welfare policy expert Robert Rector put it: The welfare system that has existed for the past thirty years may best be conceptualized as a system that offered each single mother with two children a “paycheck” of combined benefits worth an average of between $8,500 and $15,000, depending on the state. The mother had a contract with the government. She would continue to receive her “paycheck” as long as she fulfilled two conditions: 1. She must not work. 2. She must not marry an employed male.
Walter Williams: The greatest percentage of poverty is found in female-headed households. Over 70 percent of female-headed households are poor. A large percentage of poor people are children (17 percent); fully 85 percent of black children living in poverty reside in a female-headed household.
Government handouts actually perpetuate poverty by creating a culture of dependency. As welfare policy expert Robert Rector put it: The welfare system that has existed for the past thirty years may best be conceptualized as a system that offered each single mother with two children a “paycheck” of combined benefits worth an average of between $8,500 and $15,000, depending on the state. The mother had a contract with the government. She would continue to receive her “paycheck” as long as she fulfilled two conditions: 1. She must not work. 2. She must not marry an employed male.
Walter Williams: The greatest percentage of poverty is found in female-headed households. Over 70 percent of female-headed households are poor. A large percentage of poor people are children (17 percent); fully 85 percent of black children living in poverty reside in a female-headed household.
You can’t tax your way to a balanced budget without tanking the job creation that actually generates tax receipts. —Matt Kibbe
Minimum wage laws make it illegal for a worker to accept a job that pays less, even if the worker needs that job. —Peter Schiff
