The minimum wage is immoral

The Moral Argument Against the Minimum Wage, by Douglas Groothuis

The minimum wage is immoral. To understand why, we must first explore its social and economic dimensions. Socially, the minimum wage is a type of social contract. Two parties, the employee and the employer, are involved in negotiating a contract over labor and compensation. The negotiation isvoluntary in that the employer is not being forced to hire any specific person and the employee is not being forced to work for any particular company, andconsensual in that both employer and employee mutually agree to the terms and conditions of the labor contract. Within the philosophy of social contract theory, one’s moral obligations are relative to the contract that is agreed upon. In this case, once the contract has been signed, the employee is morally bound to fulfill their work responsibilities, and the employer is morally bound to compensate them for their labor (through wages, medical benefits, vacation time, paid time off, sick leave, etc.). If either side fails in their duties, the contract can be broken; the employer has the right to fire the worker or the employee can look for work elsewhere.

Read the whole thing. It is important.

Use Markets to Fix Healthcare

The problem with nationalizing healthcare (the Affordable Healthcare Act aka “Obamacare”) is that it doesn’t solve the problems we are told it is supposed to solve — it just makes them worse! Government intervention brakes healthcare. More government intervention is only going to keep making everything worse.

Before You Celebrate That 5.6% Unemployment

Source: The ammo this jobs report gives the GOP

Before you celebrate:

Friday’s jobs report showing a gain of 252,000 positions and a dip to a 5.6 percent unemployment rate offered up more good news for President Barack Obama, who is wrapping up a weeklong road trip to tout the improving economy and offer up fresh proposals on housing and education in advance of his State of the Union address later this month.

Keep the following items in mind:

The report showed that average hourly earnings decreased by 5 cents to $24.57, following an increase of 6 cents in November. On the year, average hourly earnings have risen just 1.7 percent, barely enough to keep pace with inflation. The encouraging 0.4 percent increase in wages reported in November got revised back down to 0.2 percent.

 

and

The labor force participation rate also ticked down to 62.7 percent, the lowest level since the 1970s. [my emphasis] That number comes from the volatile household survey so probably does not mean very much on a single-month basis. But the overall trend in participation will be very much a Republican talking point over the next two years.

We are actively driving workers out of the workforce. This is really, really, exceptionally bad. With 27.3% of the workforce not even trying to find jobs, many of whom are relaxing in the comfortable “hammock” of unemployment or other social welfare programs, the load on those who remain in the workforce carry a tremendous burden. The heavier this burden becomes, and the more generous we are to those not working, the less incentive people have to work.

Sometimes, “generosity” – especially the “generosity” that comes from the plunder of workers (i.e. taxes) – kills.