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Milton Friedman on Wages, unions, and the minimum wage

It is a mystery why anyone would suppose that a person is better off unemployed at $2 an hour than voluntarily employed at $1.60.
Legislating Unemployment
Column, 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. 23100
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  1. 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 Unemployment
    Column, 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. 23100
    Checked against the sourceRead the original
  2. The supporters of tariffs treat it as self-evident that the creation of jobs is a desirable end, in and of itself, regardless of what the persons employed do. That is clearly wrong. If all we want are jobs, we can create any number—for example, have people dig holes and then fill them up again, or perform other useless tasks. Work is sometimes its own reward. Mostly, however, it is the price we pay to get the things we want. Our real objective is not just jobs but productive jobs—jobs that will mean more goods and services to consume.
    Free to Choose
    Book, 1980, Ch. 2 “The Tyranny of Controls”, pp. 40-41
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  3. The two-step rate is better than a one-step rate. At least, it would reduce the harm done by raising the minimum. But a no-step rate would be better than either.
    Legislating Unemployment
    Column, 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. 23100
    Checked against the sourceRead the original

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