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Supply and Demand Applies to Labor Too
CNN laments that the current federal minimum wage of $7.25 has not increased since 2009. The article concludes by telling us that raising the minimum wage will increase employment, even though this claim defies a basic economic principle. Unlike politicians and CNN, employers understand that supply and demand applies to labor as much as any…
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The Source of Prosperity
California is poised to impose new regulations for fast-food restaurants. The regulations would raise the minimum wage to $20 per hour and create a council to govern fast-food chains and set guidelines for working conditions. Demonstrating his ignorance of the source of prosperity, when he signed an earlier version of the legislation, Gov. Gavin Newsome…
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The Elephant in the Room
We are often told that a worker making the minimum wage can’t afford the rent for an apartment. As an example, a website covering housing issues in Massachusetts tells us that a minimum wage employee must work 104 hours in order to afford a studio apartment. Whether a particular article supports a higher minimum wage,…
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Self-interest and Raising Wages
In late January, Walmart, the nation’s largest private employer, announced that it will raise its minimum wage to $14 an hour. Other companies, such as Amazon and Target have a minimum wage of $15, while Costco starts employees at $17 an hour. These businesses are raising wages in order to attract employees in a tight…
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The Need to Identify the Unseen
When politicians announce a new program or policy, they tell us of all the great benefits that will result. We are told that “green” energy mandates will generate jobs. They tell us that raising the minimum wage will benefit low-skilled workers. We are told that expanding the housing voucher program will allow tens of thousands…
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Who is Really Being Subsidized?
An opinion piece in the Santa Fe New Mexican argues that affordable housing really means subsidized housing. The author correctly notes that government housing programs are subsidized by taxpayers, and below market-rate housing (often extorted from developers for permission to build) is subsidized by other home buyers and renters. The author then asks, who is…
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Free Market Solutions to the Housing Crisis: Restoring Economic Freedom
If we truly want to solve the affordable housing crisis, then we cannot look at each issue in isolation. We must consider the full context. The affordability of housing involves more than simply the cost of housing. It also includes an individual’s income. And, just as there are many restrictions on housing producers to build…
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The Helpless, Unwashed Masses
When government officials mandated the wearing of face masks in public, they implied that we are too stupid to make rational decisions. They implied that, even if we were presented with the facts, we would refuse to make wise choices. They implied that, without public officials issuing orders, we are helpless. Sen. Ted Cruz received…
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Why Theft may be Legalized in Seattle
For the past several months, public officials in Seattle have been considering an ordinance that would legalize theft, assault, and nearly one hundred other misdemeanors. While critics have argued that the law would invite a dramatic increase in crime, they are failing to address the fundamental issue—the premise that individuals have a right to a…
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Ending Choice in the Name of Anti-discrimination
Last November, the Washington State Supreme Court unanimously upheld Seattle’s “first-come, first-served” ordinance. The law requires landlords to publicize their criteria when selecting tenants and then rent to the first qualified individual. Proponents of the ordinance claim that it provides equal treatment for all individuals. According to the Seattle Times, When landlords are allowed to…
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The Victims of “Living Wage” Laws
In recent years, the “living wage” movement has made great strides in raising the minimum wage to $15 an hour in many locales. According to Wikipedia, A living wage is the minimum income necessary for a worker to meet their basic needs. This is not the same as subsistence which refers to a biological minimum….
