adventures in the free state: If Wishes Were Horses, We'd All Be Eatin' Steak!

Thursday, May 9, 2019

If Wishes Were Horses, We'd All Be Eatin' Steak!

And at unsustainably low mandated prices, too! And free ponies for everyone! Whee...! Ahh, fiat utopia. Sadly, however, TANSTAAFL intervenes. Everybody likes money -- you like money, too...?! Nobody appears to have any suggestions on where the funding for the bureaucrat-added costs of doing business is supposed to come from, though. Details, details... They do seem to understand well enough that their personal balance sheets need to add up. They're just not willing to concede the same realities for others. All your contract are belong to us; Love, the Central Planners...

Herewith, HB186, "establishing a state minimum wage and providing for adjustments to the minimum wage", before the NH Senate Commerce Committee, 5/9/2019. The sponsor easily acknowledges that the competitive market for goods and services in NH has already addressed this bill's intent: very few workers would benefit from its economic interventions. Because competition for good labor (it's why that Chatham ice cream shop calculates -- along with all of the other of their business considerations of which you know nothing, Senator Cavanaugh -- it's in its financial interest to pay such good wages).

So why is this necessary? Like the French politician Alexandre Auguste Ledru-Rollin, it seems, our rulers observe, "There go my people. I must find out where they are going so I can lead them."

But if it is necessary -- and there are no nettlesomely negative economic consequences to meddling in the market's pricing signals, because money evidently does grow on trees -- to overrule markets (which have more data than you do) and commandeer other people's contracts because "We Know Better", then why stop at $12? Why not, say, $50? Or $100? Surely that would be even better!

No, because even supporters, one can only surmise, can somehow grasp there would be problems -- of their own creation, and therefore their responsibility -- even if they can't articulate them. And the arguments against $50 are identical to the arguments against $12. Or any, for that matter.

Most simply, they're not your contracts, and you have a "knowledge problem". Show some humility. "Wishing" a business can afford to pay what you want it to pay -- and that the job being done economically supports paying that wage -- doesn't make it so. If you believe it can be paid sustainably, then start a competing business and you will instantly have your pick of the best labor. And like Bernie Sanders, you'll profit like a true capitalist.

Here's an alternative to force-monopoly coercion based in economic ignorance: Private voluntary contracts, and free-market pressure via natural pricing signals and non-government-undermined competition. Yes, even for labor. All will be well...

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