``I must give him his due. He has considerably cretinized me.'' Lautréamont

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Thursday, March 08, 2007

The Bare Minimum (NYT)

why even have them show up for work?

because paying more than the work is worth _to the worker_, and less than the work is worth _to the employer_, is the structural constraint that raises the standard of living of the nation.

with each voluntary (unsubsidized) transaction, both sides profit.

add them up, and the nation's standard of living goes up, the more of them there are.

subsidizing transactions allows work to _reduce_ the nation's standard of living.

that's why.


Instead of requiring employers to pay a higher minimum wage, and then allowing them to apply for reimbursement through tax subsidies, why not skip the middleman and subsidize the worker directly?


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