Wednesday, April 22, 2015

Return of the Luddites

Today's article in the business section of the NY Times by economist Eduardo Porter shows that some bad ideas never really fade away.

Porter notices that workers at the bottom end of the market are not sharing in the gains of prosperity.  Instead of noting that the plight of low income workers is mainly the result of government interference in the labor market, Porter wanders back to the absurd idea that we are becoming too mechanized -- robots replacing humans.

In fact, markets work.  If you tack on numerous costs to employers for having employees, employees will make much less.  You don't improve the productivity of workers by mandating additional costs to employers.   You can expect workers at the bottom to continue to lose ground as the left comes up daily with additional employer mandates.

It's too bad that workers can't receive the fruits of their own labor.  If that were permitted, low income workers would have become higher income workers and all the fuss about inequality would be absent.  But, instead, government mandates, functioning exactly in the same manner as a tax on workers, rob workers of the income that would otherwise accrue to them.

Meanwhile, extremely wealthy folks like Elizabeth Warren, Hillary Clinton, Barrack Obama and others are completely unaffected by the damaging policies that they inflict on other people.  Instead they cite the damaging outcomes of their policies as an argument to impose even more damaging policies.  Low income workers deserve better.

1 comment:

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