Archive for July 12th, 2011

Race and Economics I

July 12, 2011

Race and Economics I

It is long known and consistently demonstrated that when wage increases are imposed upon business, fewer workers are hired.  The employees that remain face inhumane demands for increased production and their hours are often cut to part-time, so the employer can avoid  mandated benefits for full-time employees.

The facts are that when government forces businesses to increase pay for workers, rather than letting the competitive market govern this matter, fewer people are employed.

This is not all bad for the socialistically inclined government. After all, they can now add the unemployed to the welfare roles.  This is one way the government can grow and increase its control over the population.

Neat, huh?!  Such a government creates a modern form of slavery (for all races) which is acceptable to those who are already dependent upon the government and those who do not understand the destructive economics of the mandated minimum wage.

V. Thomas Mawhinney, Ph.D.

The following is a quote by Walter Williams:

Unlike in prior times, most blacks are not poor, but a large percentage still are. Decent people promote policy in the name of helping the poor and disadvantaged. Those policies can make their ostensible beneficiaries worse off, because policy is often evaluated in terms of intentions rather than effects. That is a direct result of how people view the world. Consider popular support for increases in the minimum wage. If one believes that an employer must hire a certain number of workers to ge a particular job done, an increase in minimum wage means that workers will earn higher wages and employers lower profits. However, if the visionary sees employers finding substitutes for higher-priced workers…such as automation or relocating to a lower-wage environment…he might opposed increases in the minimum wage on the grounds it will cause unemployment for some workers. compassionate policy requires dispassionate analysis. Policy intentions and policy effects often bear no relationship to one another ( p. 3).

Race and Economics by Walter E. Williams


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