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Defining the free-market

I just read an article by Rusty Tanton on the minimum wage where he mentions a letter signed by 650 economists that endorse an increase of the minimum wage to $7.25 an hour:

According to a widely-discussed University of Georgia Survey Research Center survey, 89.7 percent of Georgians (i.e. The Market) support an increase in the minimum wage.

State Sen. Robert Brown (D-Macon) has responded to market forces and will introduce legislation to raise the minimum wage from $5.15 to $7.25 per hour in next year's Legislative session.

And yet, the socialist Republican majority appears poised to step in and deny the free market the wage increase it demands.

"I personally don't support it. You start eliminating part-time jobs for young people when you raise it," House Majority Leader Jerry Keen told the Augusta Chronicle.

Setting aside the belief of 650 economists that Keen's statement is hogwash, I have to ask: Rep. Keen, who are you to deny the market what it demands?

Yeah, I don't get it either. Government intervention in the economy on wages is collectivist (or socialist, whatever you wish to call it).

On the 650 economists, this is what Cafe Hayek wrote about that a few months ago:

What were they thinking? Little or no effect on employment? How can you sign your name to something like that and call yourself an economist? I guess you could argue that there's little effect on TOTAL employment. That effect is very hard to find empirically because so few workers are affected by the minimum wage and its impact gets swamped by other factors. But among low-skilled workers, the ones we want to help? Maybe the people who signed believe that "modest" increases in the federal minimum wage (to $7.25) would effect so few people (many of whom are already covered by state minimum wage laws), that the effect is mainly symbolic. So signing a petition is more of a political statement than a statement about economic reality.

It wouldn't bother me if they petitioned for social programs that would help workers who lose their jobs due to an increase in the minimum wage. You can be in favor of that and still be a first-rate economist—you believe that the benefits of increasing the minimum outweigh the harm and you'd like to mitigate the harm. But to argue that there's no harm, that there's a free lunch because the demand curve for low-skilled labor is vertical? How do you defend that?

Just because the mob wants something doesn't mean that they'll get it. After all...Gore won the popular vote in 2000, right?

You have no right to a job. You have no right to a minimum wage...and you have no right to use government to force another person to live for you. End of story.

Comments

Heh, well, to a point the whole thing was meant to be sarcastic. But it was half serious in that I believe there are separate marketplaces to reckon with that most people who talk about free markets ignore: marketplaces not just of economics, but also of ideas.

I understand, but the idea is to use the police power of government to achieve that end. It doesn't promote liberty, it promotes force and slavery to the mob.

Good seeing you and Amber last night.

I didn't know that "the market" needed the power of government to determine whether or not an employee's labor was worth $5.15/hr or $7.25/hr.

But Danny,
If the market demands to be governed or even enslaved (as Jason so eloquently stated), then is it not a socialist tendency to say "we think freedom is best for you despite the slavery you demand"?

The whole point of this exercise was to go through a logical loop to demonstrate my lack of faith in rigid ideological principle. The world doesn't operate that neatly.

Oh, and it was good seeing you to Jason. Hope to run into you at more haunted mansions next year.

Rusty, I am interpreting your "exercise" to mean that 89% of Georgians want the gov't to make decisions for them regarding min wage.

To deny them their want is socialist because the gov't is making the decision not to give the mob their wish.

To allow or not allow them their wish, which will be enforced by gov't, is socialist because the gov't controls the wage regardless.

Is this the "loop" in which your referring?