Milton Friedman on Wages, unions, and the minimum wage
I am convinced that the minimum-wage law is the most anti-Negro law on our statute books—in its effect, not its intent.
Newsweek column of September 26, 1966
Column, 1966, Newsweek (September 26, 1966), his first Newsweek column; quoted by Friedman himself in “Legislating Unemployment” (Newsweek, 1972), reprinted in the Congressional Record, Extensions of Remarks, June 28, 1972, p. 23100. Later collected in An Economist’s Protest (1972)., Congressional Record, June 28, 1972, p. 23100
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The true minimum-wage rate is zero—the amount that an unemployed person receives from his nonexistent employer. This minimum-wage rate will not be affected by the new law. Rather, the law will increase the number of persons who receive a wage rate of zero.
Legislating UnemploymentColumn, 1972, Newsweek (1972; the issue current on June 28, 1972); reprinted in full in the Congressional Record, Extensions of Remarks, June 28, 1972, p. 23100, Congressional Record, June 28, 1972, p. 23100Checked against the sourceRead the originalWhy would Congress do such a thing? Because the adverse effect on the poor is diffuse and its source misunderstood and hence produces little political pressure. Effective pressure is exerted by organized groups that welcome the effect of a high minimum-wage rate in strengthening unionized and skilled workers vis-a-vis nonunionized and unskilled workers and in protecting employers in high-wage areas (the North) from the competition of employers in low-wage areas (the South). These organized groups find ready allies in the liberal reformers whose lack of understanding of economics misdirects their sincere concern for the disadvantaged.
Legislating UnemploymentColumn, 1972, Newsweek (1972; the issue current on June 28, 1972); reprinted in full in the Congressional Record, Extensions of Remarks, June 28, 1972, p. 23100, Congressional Record, June 28, 1972, p. 23100Checked against the sourceRead the originalYou can rigidly enforce only those laws that most people believe to be good laws, that is, laws that proscribe actions that they would avoid even in the absence of laws. When laws render illegal actions that many or most people regard as moral and proper, they can be enforced only by brute force. Speed laws are an obvious example; alcohol prohibition, a more dramatic one.
Why Government Is the ProblemJournal article, 1993, Hoover Institution Press, Essays in Public Policy no. 39, p. 2Checked against the sourceRead the original
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