Thursday, August 24, 2006

Mischief on the Minimum Wage

Chris Dillow supplies his usual exceptionally intelligent analytical mischief in a discussion on the minimum wage triggered by Don Boudreaux' experience getting comments that do not address intellectual points at all. (I should point out that I think mischief in this context is a good thing.)

I like his point 5:

When I was a Trotskyite in the early 80s, I supported a minimum wage precisely because it was "impractical." We did so to show that capitalism* could not deliver living wages for all.
I'm still not sure if this argument is wholly wrong.

And I also think it is worth taking a close look at his final comment:

by capitalism, I mean private, unequal and hierarchical ownership of capital, not a free market economy.

As he has pointed out frequently, there are separate issues here.


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