Minimum Wage

issues-minimum-wage--libertarian-party-of-nevada

 

Minimum Wage


Libertarians reject minimum wage laws.


Libertarians believe the government should not force business owners to pay their employees a set wage and repeal the Nevada Minimum wage law.

Nevada has the highest unemployment rate in the nation. Libertarians believe imposing mandatory minimum wage laws on business owners will be counterproductive and lead to higher unemployment in Nevada.

The effects of inflation and minimum wages can be seen through the buying power of the dollar. As we continue quantitative easing and raising minimum wages, the poor are getting poorer and rely more and more on public assistance. The very idea of a livable wage assumes that jobs like delivering newspapers, bagging groceries and walking dogs for neighbors is enough to support a family on...and it just is not true. Some jobs are for young men and women looking to build character and earn a little money. With a minimum wage, those jobs get automated, eliminated or the cost of goods associated with those jobs gets more expensive. Remember when we had gas station attendants?

Libertarians believe that real wages represent actual productivity, as it relates to the things people want and need. Artificial redistributions of wealth, such as a minimum wage or high marginal tax rates do not serve their intended purpose. The minimum wage makes labor more expensive, the result of which is that less labor can be afforded. Less labor means lower productivity, which means fewer of the things that people want and need--which means lower real wages for everyone, but especially people with the most interaction with low income workers. Lower production also means less real capital, which means less investment. High marginal taxes are not likely to reduce consumption for wealthiest members of society. Resources that would be directed towards productive enterprises, as dictated by what people most want or need (profits), are instead used at the arbitrary discretion of the government. The best way to increase productivity, and therefore real wages, is to allow markets to coordinate labor with the creation of subjective value. Federal intervention in the monetary market redirects resources from their most productive uses towards arbitrarily favored sectors, notably banking, finance, and housing. Appreciation in these sectors comes at the expense of production in the things that people want and need. The result is depreciated capital, and a transfer of wealth from other sectors. States can limit the damaged caused by malinvestment by accepting or allowing trade in alternative currencies, such as gold and silver, commodity backed currency, cryptocurrency, or other market alternatives.