Minimum Wage Laws are Immoral…

Governor “Moonbeam” is in the news again.  Instead of fleecing taxpayers into paying for oil, gas, and mineral explorations on family owned property in California, the Governor of California is now forcing his own brand of immorality on taxpayers.

Moonbeam told Democratic leaders in the state Legislature that he would push for a $15 minimum wage by 2022.  His action is an effort to take control of over an issue that was to be decided directly by voters this November.

The plan would raise the minimum wage from $10 an hour to $10.50 on Jan. 1, 2017, followed by a 50-cent increase in 2018.  Yearly $1 increases would continue through 2022, and would give California the highest minimum wage floor in the country.

Of course, the plan will accomplish nothing more than decimate the lives of poor uneducated minorities in the inner cities by driving out small businesses from California.  The irony of a Democrat governor punishing poor uneducated democrats would be humorous if it wasn’t such a monstrously evil act.

You see, minimum wage laws are immoral.

To understand why, one must understand that wages are a contract between two parties: the employer and employee.  These two parties alone are responsible for negotiating a mutually acceptable labor contract.  Any third-party involvement by outsiders is an immoral intervention into the rights of the employer and employee.

What makes this funny is that it’s these same people who decry government intervention into their bedrooms who suddenly have no qualms about bureaucrats making wage decisions for a private business.

“Don’t let the state tell me whom I can marry, or whether a woman can suck the brains out of the back of a baby’s head, but by God, let the state decide how much someone earns flipping burgers!”

Politics is, and shall remain, the playground for the insufferably stupid!

Moonbeam has no understanding that wages are determined by the labor market.  Wages, like other values, are subjective.  They’re determined by supply and demand.  And therein lies the problem.

Moonbeam and others who demand to be heard on this issue continue to subscribe to the tired philosophies of the labor theory of value (Marxism), which makes the error of pinning objective values associated to specific tasks.

But wages cannot be determined by any universal standard of labor compensation.  Rather, like all commodities, labor rises and falls with subjective valuations. And because these valuations are driven by both endogenous and exogenous factors, any political attempts to standardize or regulate them will fail to produce the expected outcomes.

So, in the end, proponents of minimum wage laws make two mistakes.

First, they falsely reason that wages should be determined by what is minimally needed to support a person (living wage).  Let’s discount the fact that a “living wage” is a completely meaningless term in real economics.  The term is nothing more than a prop for those unable (or unwilling) to defend their argument on intellectual grounds. Yet, by relying on an such an objective standard, those advocating for minimum wages ignore the subjective value of real world economics.

And unless Bernie Sanders is elected, it can’t work!

Secondly, the minimum wage represents a breach in the social contract when one party (employee) enlists the help of a brown-shirted Nazi thug (the government) to force the other party (employer) to accept their terms (higher wages).

This means that employers are being compelled against their will to abide by a labor contract with which they do not agree.  This is immoral conduct by unions and activists that harm businesses and tramples the rights of citizens to be free from government intrusion into private affairs.

Since proponents of the minimum wage misunderstand the economics of wages, they falsely appeal to a standard of living to make their case for justifying their coercive acts.  The result is violence against employers and severe distortions in labor markets that lead to higher unemployment and closed businesses.

And less freedom for everyone…

 

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