Workers Lose
This morning I listened on NPR to an economically naive report titled “Workers scored wins in the election — including in business-friendly red states.” Even before the NPR host turned the spot over to the reporter, I knew that a more accurate title for the report would be “Workers suffer losses in the election — including in business-friendly red states.”
I knew this because I was certain that the report is about hikes in minimum wages, as well as mandated leave and other labor-market interventions. And, of course, that’s exactly what the report is about.
Not once – listen for yourself- does the reporter as much as acknowledge that these interventions come with trade-offs. There’s no recognition that forcing employers to pay higher wages might reduce the quantity of labor those employers employ. There’s no recognition that forcing employers to offer paid leave to workers will cause declines in wages or other fringe benefits.
No. The unthinking presumption is that employers will respond to these interventions simply by transferring more of their wealth to their employees.
I’m simultaneously amused and saddened that so many people go through life with such a bizarre understanding of economic reality.
The post Workers Lose appeared first on Cafe Hayek.
