PrestoPundit

THE MINIMUM WAGE EFFECT —

Posted by PrestoPundit on 06/06/2008

we’re seeing it now in the latest unemployment numbers.

The ratchet effect of the “road to serfdom” mechanism explains how one bad big government intervention in the market leads to the demand for another — in this case the unemployment caused by leftist politicians giving us a minimum wage increase will lead these same leftists to demand yet further interventions in the market to “create jobs” and jack up the financial payoff for being unemployed.  Many of them are already demanding yet further increases in the minimum wage. 

Of course, the great thing about being a leftist politician is never having to look back at what you’ve done — your brain dead leftist conspiracy theories about wealth and poverty give you an endless alternative to looking at the actual cause and effect workings of the the political economy.  Very convenient when your policies succeed only at destroying wealth and wrecking the signaling mechanism of the price system.

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