Thursday, December 12, 2013
My letter to the NY Times re: Free Market Capitalism Works Every Time
Re: Dwindling Tools to Raise Wages, by Eduardo Porter
Economic law is a deductive and not empirical science, meaning that market research cannot determine the effects of raising the minimum wage. We know by the laws of logical deduction that if the marginal utility of labor is below the cost of labor, which includes ALL costs not just the objective salary, unemployment will exist. Mr. Porter should ask himself why the New York Times pays him more than the statutory minimum. I'm sure that Mr. Porter is worth more than the minimum and if the Times failed to pay him what he is worth, he would go to work for someone else who would pay him more. This application of economic law pertains to low wage workers, too. Mr. Porter says that "the most compelling argument for raising the minimum wage is simply this: It is worth a try." I suggest that we try something that works every time--free market capitalism.