Free Markets, Free People

Cafe Hayek


NYT: Raise the minimum wage!

You may find this interesting … I did.  The New York Times editorialized about the minimum wage on the 12th of February.  Unsurprisingly, they’re for raising it:

New York is an expensive place to live, and unaffordable for workers struggling on $7.25 an hour, the federal minimum wage. Nineteen other states, recognizing that the federal minimum is too low for survival, even with food stamps or other government assistance, have increased their minimum above that level. Lawmakers in Massachusetts raised it to $8 an hour. Connecticut’s is $8.25, and it is $9.04 an hour in Washington State.

It is time for New York to raise its minimum wage enough to help more than 600,000 struggling workers. Assembly Speaker Sheldon Silver is vigorously pushing a bill to raise the minimum to $8.50 an hour immediately and to adjust it each year for inflation. This should not be a controversial measure.

Want to know what would be a controversial measure, at least as far as the NYT would be concerned?  George Mason University economics professor Donald J. Boudreaux (Café Hayek) answers the Times:

In the same spirit of demanding that government improve people’s economic well-being simply by ordering that people be paid more, allow me to make a similar plea on your behalf.

The newspaper business today is in difficult straits.  So I hereby call upon the legislature in Albany to force you and other newspapers in New York to raise your subscription and advertising rates by 17.2 percent (the same percentage raise that you want to force low-skilled workers to demand from their employers).  Voila!  If your economic theory is correct, your profits will rise.  And the magnitude of these higher profits, we can assume (just as you assume in the case of low-skilled workers), will be greater than any negative consequences that might be unleashed by such legislative interference in your ability to determine the terms on which you sell your services.

I. Loved. That. Answer.

It is the perfect comeback to those who would use the force of government to arbitrarily raise wages and commit your money to their priorities.  As with most things, they’d never stand for you doing the same to them.  Boudreaux’s answer highlights that in spades.  It’s perfect.  And he challenges them with “if your economic theory is correct …”.  I laughed out loud reading that.

Oh, and we demand that the NYT adjust their subscription and advertising rates each year for inflation.

That shouldn’t be a controversial measure, should it?

You can hear the huffing and puffing in the NYT boardroom from here.

[HT: Villainous Company]

~McQ

Twitter: @McQandO