Boudreaux on Labor

quotes economics labor

20 Jan 2014

Don Boudreaux writes:

Those who think that low-wage labor is a threat to the American economy therefore conclude that people are generally richer and economically more secure the more difficult it is to produce desirable goods and services – the greater are the amounts of valuable resources, especially labor, that must be used to produce the things that consumers demand – the more costly it is to supply ourselves with what we want.

Of course, this belief is an ages-old economic fallacy, one in which consequences are confused with causes, and one which also blinds its adherents to much that is unseen. This fallacy fuels the popular thirst for endless draughts of protectionism, Keynesianism, and other poisonous policy elixirs.

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