The Freeman 1972 - The Ludwig von Mises Institute

530 THE FREEMAN Septemberthis point are plentiful, indeed.However, not all sponsors ofminimum wage laws are "goodguys" lacking in economic sense.There are countless thousands,perhaps a majority, whose motivationsare mercenary. The firsttype is to be found in labor union"leadership." The motivationhere is to keep these low-wage,marginal producers off the labormarket, that is, to eliminate themfrom. competition. Permit no oneto wait on table for, say, $1.00 anhour, even if he wishes to do so,and the union gains a monopoly ofwaiters' jobs. Call this crass materialismor what you will, it isnot inspired by sympathy or pity.The second type is to be foundin political "leadership." The motivationhere is to climb on thebandwagon of labor union popularityin order to get elected tooffice. Sympathy? Hardly!As a novelist says of one ofthese characters, "He had learnedto love the poor, profitably!"Minimum wage laws generallycall to mind only those legislativeedicts bearing the label. In 1938the minimum was 25 cents; in1945, 40 cents; and since has risenstep by step to $1.60. Presently,the proposal is $2.00. These edicts,however, are only the obvious.Every arbitrary wage coercivelyimposed by labor unions, over andabove whatever the free marketwage would be, is really a minimumwage. The minimum wagefor a captain of a 747 jet is$57,000 annually. Try to get thejob for less! But stop not here.The tariff and all other restrictionsto free and unfettered exchangesare, in a strict economicsense,minimum wage laws. Thosewho condemn minimum wage laws,so called, and lend support to otherinfractions of the free marketsuch as wage and price controlsare proclaiming their inconsistency.Everyone of these fixitiesand rigidities - these closures ofthe market - wreak their hardshipon consumers; and the poorer theperson, the greater the hardship!A More Helpful ApproachWhat is the alternative? Whatadvice shall we give the personwho earnestly desires to help "thepoor?"First of all, he must recognize:3nd respect as an individual theone he would love - which meansto encourage but in no way to interferewith that person's capacity,will, and effort to help himself.In other words, afford himevery opportunity to earn. his way.How earn it? By serving others,of course. How else does anyoneearn anything! And what is themost likely opportunity for a poorman to earn his way? By sellinghis services to the highest bidder