Re:Milton Friedman: Is Capitalism Humane? (1977) [video]
by oDot on Friday March 06, 2020 @12:16PM
(#22505332)
Government only got in late in the game, and if you take a look, a lot of the policies that look good on the surface actually hurt the same people they claim to help.
For example, the minimum wage is clearly helping out skilled workers. Imagine an experienced railroad worked earning $5 an hour laying tracks. To match his productivity, you'd need at least 3 unskilled workers, which are worth it at $1 each. The railroad union, to guarantee long-term work for its members, lobbies for a minimum wage, and now when it's, say, $2 an hour, those 3 unskilled workers are too expensive and no one hires them.
For example, the minimum wage is clearly helping out skilled workers. Imagine an experienced railroad worked earning $5 an hour laying tracks. To match his productivity, you'd need at least 3 unskilled workers, which are worth it at $1 each. The railroad union, to guarantee long-term work for its members, lobbies for a minimum wage, and now when it's, say, $2 an hour, those 3 unskilled workers are too expensive and no one hires them.