Friday, January 19, 2007

Minimum Workforce

Cafe Hayek has a great article entitled "Minimum-Workforce Legislation" that uses a reductio to demonstrate the economic illogic of minimum wage legislation. It's also rather tongue-in-cheek.
The premise is that, if it makes sense to have a minimum wage, which essentially says that no person's work is possibly worth less than whatever the government currently thinks it is, and which is simply the government helping people (especially poorer people) by ensuring that businesses do not pay them anything less than what the government thinks their work is worth, then it also makes perfect sense for the government to determine how many employees a business must employ - after all that would help poorer people by ensuring that there are enough jobs. Definitely worth reading.


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