Posts Tagged ‘economics’

Murray N. Rothbard wrote:

In truth, there is only one way to regard a minimum wage law: it is compulsory unemployment, period. The law says: it is illegal, and therefore criminal, for anyone to hire anyone else below the level of X dollars an hour. This means, plainly and simply, that a large number of free and voluntary wage contracts are now outlawed and hence that there will be a large amount of unemployment. Remember that the minimum wage law provides no jobs; it only outlaws them; and outlawed jobs are the inevitable result.

Then, of course, the government can come to the rescue of the suckers it just unemployed with welfare (unemployment). Amazing how this works isn’t it?


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How the public is conditioned at their own expense to accept their economic exploitation. The outrage of non-science being taught as fact in our educational system should be protested by intellectuals and scientists everywhere.

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Walter E. Williams writes:

One of the more insidious effects of minimum wages is that it lowers the cost of racial discrimination; in fact, minimum wage laws are one of the most effective tools in the arsenals of racists everywhere, as demonstrated by just a couple of examples. During South Africa’s apartheid era, its racist unions were the major supporters of minimum wages for blacks. South Africa’s Wage Board said, “The method would be to fix a minimum rate for an occupation or craft so high that no Native would likely be employed.” In the U.S., in the aftermath of a strike by the Brotherhood of Locomotive Firemen, when the arbitration board decreed that blacks and whites were to be paid equal wages, the white unionists expressed their delight saying, “If this course of action is followed by the company and the incentive for employing the Negro thus removed, the strike will not have been in vain.”

More on the federal unemployment guarantee (aka minimum wage) here.

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Partisan “economist” Paul Krugman admits Obamacare created death panels and their purpose is to save money:

More on Paul Krugman here.

(At least he is being honest for a change!)

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More here.

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To further summarize Howard Katz’s excellent article on unemployment:

– The term “unemployment” is a uniquely American term that came into use in the 1870’s. “Before that time there was not enough unemployment going on to invent a word for it. Why is that?”

– Every other good, besides human labor, does not experience unemployment.

– “Probably the most important cause of unemployment is the over valuation of human labor.”

– “When the Civil War started in 1861, the Union issued paper money (called greenbacks) to pay for troops and war supplies. From 1861 to 1865, the U.S. price level doubled.”

– “In early 1875, Congress voted resumption of hard money, effective 1879.”

– “Prices declined in the U.S. for 30 years, and an average $1.00 item in 1866 was down to 30¢ by 1896.” This period saw the greatest economic growth ever.

– Wages do not drop as fast as prices. Therefore even though the average man may make less in nominal terms, his real wages are actually higher during deflation.

– “This is the most important cause of unemployment. Government reduces the money supply. Prices go down. Wages also go down but not as much.”

– “Unemployment is caused by the fact that real wages rise above their fair market value, and employers cannot pay the high wage. This rise in real wages is caused by the fact that government shrinks the money supply. This causes a fall in prices.”

– “What caused the “depression” of the 1930s was that the U.S. money supply fell by about 30% from 1930-1932. There was a corresponding 30% fall in prices.”

– Due to government intervention “unemployment of the 1930s was not really reduced until the rise in prices of the 1940s led to a drop in real wages.”

– From 1940 to present government has been creating money. “In this case, the opposite occurs. (Nominal) wages do not rise as fast as prices, and real wages decline.”

– “In short, if the government increases the currency, [then real wages fall]. And if the government decreases the currency, then real wages rise.”

– “If we want a society where virtually everyone is employed making a fair wage (for the value they create), then the government should simply keep the (per capita) money supply stable. This is what was accomplished by the American gold standard”

Now for the juicy part:

– Since the end of the gold standard, unemployment is needed to sell massive inflation (increasing money supply, declining real wages) to a gullible public.

– Unemployment is deliberately created using unions, minimum wage laws and various other employer burdens.

The working class then elects politicians promising to end unemployment through government spending (inflation), not realizing the purchasing power of their wages is being destroyed as a result. They are victims of a huge fraud. Convenient for the banksters though.

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