Summary

“There are certain animals that are weak compared to others: for example, the porcupine is defenceless except for its quills, the deer is vulnerable except for its speed. In economics there are also people who are relatively weak. The disabled, the young, minorities, the untrained – are all weak economic actors. But like the weak animals in biology, they have a compensating advantage: the ability to work for lower wages. When the government takes this ability away from them by forcing up pay scales, it is as if the porcupine were shorn of its quills. The result is unemployment, which creates desperate loneliness, isolation and dependency.” Walter Block (Mises Institute) “Opponents of minimum wages argue that they hurt jobs in Europe; supporters say that they combat exploitation and help the poor. (…) Contrary to popular wisdom, it is as easy to make a theoretical case against minimum wages as for them. Evidence, not theory, is what is needed now. (...) The (good or bad) effect of minimum wages has been exaggerated.” Dolado et al (1996)