Posts tagged Minimum wage

Re: On Dissolving the State, and What to Replace It With

Kevin,

Thanks for the reply. Here’s mine, on the minimum wage: GT 2008-03-06: On crutches and crowbars.

On dual strategies and the medallion cartel, I agree with you that there are some potential payoffs for the legal reform approach, including some payoffs that might accrue to making the counter-economic approach easier to pursue. But it does seem to me that there are already a lot of smaller-government reform types (IJ, etc.) who are already working that angle. As I see it, it’s usually better for anarchists to specialize in what we really want, and the most direct routes to it, particularly when (as I think is the case here) there’s lots of self-consciously libertarian effort already being put into the less radical solution, while relatively little self-consciously libertarian effort is going into the more radical solution, even though the more radical solution seems to be producing more in the way of concrete results. I figure that it may be a good idea not only to mention, but really to emphasize the ultra-radical position, which doesn’t have a lot of advocates right now, and let the reformists, which there are already more than enough of, do their thing in our wake.

Re: On Dissolving the State, and What to Replace It With

Kevin: Frankly, eliminating the minimum wage and food stamps is at the very bottom of my list of priorities.

I agree with you on food stamps, but not on the minimum wage. In fact it’s laws like the minimum wage which I especially had in mind when I mentioned crowbars being passed off as crutches. While I agree that a free market would almost certainly result in substantial increases in real income and substantial decreases in cost of living for virtually all workers — to the point where they would either be making well above the current minimum wage, or at least where fixed costs of living would have dropped enough that it amounts to the same — there’s also the question of what we should be pushing for in the meantime in-betweentime, when there aren’t fully free markets in labor, capital, ideas, and land. In that context, the minimum wage law is, I think, actively destructive. Conditional give-aways, like foodstamps, are one thing; the program itself doesn’t violate anyone’s rights (it’s the tax funding that’s the problem), and people can always choose not to go on foodstamps if they decide (for whatever reason) that it’s doing them more harm than good. Not so with minimum wage; the only way to shake off this so-called protection is to seek out someone who’ll let you work under the table, and hope the government doesn’t catch on. The result is forcing one class of workers out of work in favor of another, more privileged class of workers. Hence, I’d argue we should treat abolition of the minimum wage a lot differently, in terms of strategic priorities, from how we treat government welfare, food stamps, etc.

Kevin: One of the best ideas I’ve heard, as an intermediate stage in scaling back the state, was a proposal on the Freedom Democrats’ list: to scale back the licensing system, at the very least, to prohibit any restriction on the number of licenses granted based on an estimate of what the market would support, or any licensing fees higher than the bare minimum cost of administering the system. That, in itself, would utterly demolish the effect of the taxi medallion system, among many other things.

Well, sure, I guess. On the other hand, in terms of practical success, it does seem to me that, as of right now, gypsy cab drivers are doing a lot more to effectually undermine the taxi medallion system in New York City than political activists and legal reformers are. I suspect that in a lot of these cases the best thing to do is really to work on ways to route around the damage, rather than trying to push right through it.

Re: On Dissolving the State, and What to Replace It With

Kevin,

Broadly speaking, I agree with your and Henley’s point about strategic priorities. It’s an odd form of libertarianism, and a damned foolish one, that operates by trying to pitch itself to the classes that control all the levers of power in both the market and the State, and to play off their fears and class resentment against those who have virtually no power, no access to legislators, are disproportionately likely not to even be able to vote, and who are trodden upon by the State at virtually every turn. It makes just about as much sense as trying to launch a feminist movement whose first campaign would be to organize a bunch of men against their “crazy ex-girlfriends.”

But I do want to sound a note of caution. Aren’t there a lot of so-called social programs out there which the government fraudulently passes off as crutches, when in fact they are crowbars? Since you mentioned it, consider the minimum wage–the primary effect of which is simply to force willing workers out of work. If it benefits any workers, then it benefits the better-off workers at the expense of marginal workers who can less afford to lose the job. Or, to take another example, consider every gradualist’s favorite program — the government schools — which in fact function as highly regimented, thoroughly stifling, and unbearably unpleasant detention-indoctrination-humiliation camps for the vast majority of children and adolescents for whose benefit these edu-prisons are supposedly being maintained.

Or for that matter, consider phony “pro-labor” legislation like the Wagner Act, the primary function of which is actually to capture unions with government patronage and bring them under greater government regulation.

Aren’t there a lot of so-called “crutches,” usually defended by corporate liberals and excoriated by conservatives, which really ought to be pressured and resisted and limited and abolished as quickly as possible, precisely because, bogus liberal and conservative arguments notwithstanding, they actually work to shackle the poor or otherwise powerless “for their own good”?