New Minimum Wage Increase in Nigeria is a Pyrrhic Victory for Organized Labor
https://mises.org/mises-wire/new-minimum-wage-increase-nigeria-pyrrhic-victory-organized-labor
By Michael Njoku
> The Nigerian government has passed a new minimum wage law, and the usual suspects are happy because the country "is getting a raise." Economic reality, however, will set in soon enough.
Rothbard:
> Compulsory unemployment is achieved indirectly through minimum wage laws. On the free market, everyone’s wage tends to be set at his discounted marginal value productivity. A minimum wage law means that those whose DMVP is below the legal minimum are prevented from working. The worker was willing to take the job, and the employer to hire him. But the decree of the State prevents this hiring from taking place. (italics in original)
Mises:
> The sacrifice that a man or a group makes in renouncing some short-run gains, lest they endanger the peaceful operation of the apparatus of social cooperation, is merely temporary. It amounts to an abandonment of a small immediate profit for the sake of incomparably greater advantages in the long run.
originally posted at https://stacker.news/items/659444
Undisciplined /
npub1t4…w4jj5
2024-08-23 19:15:52
Author Public Key
npub1t49ker2fyy2xc5y7qrsfxrp6g8evsxluqmaq09xt7uuhhzsurm3srw4jj5Published at
2024-08-23 19:15:52Event JSON
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"content": "New Minimum Wage Increase in Nigeria is a Pyrrhic Victory for Organized Labor\nhttps://mises.org/mises-wire/new-minimum-wage-increase-nigeria-pyrrhic-victory-organized-labor\n\n\nBy Michael Njoku\n\u003e The Nigerian government has passed a new minimum wage law, and the usual suspects are happy because the country \"is getting a raise.\" Economic reality, however, will set in soon enough.\n\nRothbard:\n\u003e Compulsory unemployment is achieved indirectly through minimum wage laws. On the free market, everyone’s wage tends to be set at his discounted marginal value productivity. A minimum wage law means that those whose DMVP is below the legal minimum are prevented from working. The worker was willing to take the job, and the employer to hire him. But the decree of the State prevents this hiring from taking place. (italics in original)\n\nMises:\n\u003e The sacrifice that a man or a group makes in renouncing some short-run gains, lest they endanger the peaceful operation of the apparatus of social cooperation, is merely temporary. It amounts to an abandonment of a small immediate profit for the sake of incomparably greater advantages in the long run.\n\noriginally posted at https://stacker.news/items/659444",
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