 |  |
| |
|
June 12, 2008
Leak: Deadweight Loss from the Minimum Wage
I've had a great time in Great Barrington, Massachusetts while I've been visiting the AIER. It's absolutely beautiful up here, but I was at a coffee shop yesterday when I noticed a sign saying "please bus your own tables" (I paraphrase). I saw a similar sign at an ice cream place last week; I interpret both as examples of the deadweight loss from the state's $8.00 per hour minimum wage. Someone somewhere might be willing to bus tables at coffee shops for $7.00 per hour, but they are prevented from doing so by state law. Granted, cleaning my own table at a coffee shop is at best a trivial inconvenience, and it's something I usually try to help with anyway. However, when you add up the number of possible mutually-beneficial trades that are ruled out by government fiat, then you're dealing with potentially substantial leakages from the prosperity pool. Posted by Art Carden at 09:21 AM in Economics
|
The statesman who should attempt to direct private people in what manner they ought to employ their capitals would not only load himself with a most unnecessary attention, but assume an authority which could safely be trusted, not only to no single person, but to no council or senate whatever, and which would nowhere be so dangerous as in the hands of a man who had folly and presumption enough to fancy himself fit to exercise it. -Adam Smith
Our Bloggers
Joshua HallRobert Lawson E. Frank Stephenson Michael C. Munger Lawrence H. White Craig Depken Tim Shaughnessy Edward J. Lopez Brad Smith Mike DeBow Wilson Mixon Art Carden
Blogroll
Search
Archives
By Author:
Joshua HallRobert Lawson E. Frank Stephenson Michael C. Munger Lawrence H. White Edward Bierhanzl Craig Depken Ralph R. Frasca Tim Shaughnessy Edward J. Lopez Brad Smith Mike DeBow Wilson Mixon Art Carden
By Month:
November 2008October 2008 September 2008 August 2008 July 2008 June 2008 May 2008 April 2008 March 2008 February 2008 January 2008 December 2007 November 2007 October 2007 September 2007 August 2007 July 2007 June 2007 May 2007 April 2007 March 2007 February 2007 January 2007 December 2006 November 2006 October 2006 September 2006 August 2006 July 2006 June 2006 May 2006 April 2006 March 2006 February 2006 January 2006 December 2005 November 2005 October 2005 September 2005 August 2005 July 2005 June 2005 May 2005 April 2005 March 2005 February 2005 January 2005 December 2004 November 2004 October 2004 September 2004 August 2004 July 2004
Powered by
Site design by |
