Sunday, April 20, 2014

Regulation

Leftist regulation plans, like the minimum wage and rent controls, to help poor people are contradictory.
"If higher mandated wages increase willingness to offer labor services, the reverse must also be true. Lower wages must reduce workers willingness to offer labor services. But if that is so, rent controls must also reduce landlords’ willingness to provide housing, and rent control will restrict rather than expand tenants’ housing options.
Similarly, if legislated lower rents increase willingness to rent housing, the reverse must also be true. Higher rents would reduce families’ willingness to rent housing. But if that is so, higher minimum wages must also reduce employers’ willingness to hire low-skill workers, and the minimum wage will restrict rather than expand low-skill workers’ labor market options. That backers of both policies use not only faulty, but logically contradictory, arguments reveals how flawed their cases are."
These policies are not about economics. They're about politics.

How minimum wage laws increase poverty.
"The unemployment directly and indirectly caused by raising the minimum wage will require additional government welfare spending and thus higher taxes and/or greater budget deficits to finance it. "
Democrats know this. This is what they want.

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