Monday, March 31, 2008

Why Minimum Wage Increases Don't Help..

"There is only one way that leads to an improvement of the standard of living for the wage-earning masses, viz., the increase in the amount of capital invested. All other methods, however popular they may be, are not only futile, but are actually detrimental to the well-being of those they allegedly want to benefit." - Ludwig Von Mises (Austrian economist) in "Planning for Freedom"

No matter how much the government or unions attempt to raise wages, their efforts will be futile until the market supports such raises. Artificial wage raises (ie. wage raises not supported by actual market value) will always be evened off by layoffs and other factors.

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