Intro:
Text from Mises ' Human Action shows the harmful effects of the increase for the State minimum wage, a theme dear to labor unions. This increase in unemployment produces and syndicates actions appeals to violence and violate the right to property. Increasing the minimum wage is an artificial price rise (above market price) of the labor force and is part of the broader category of socialist-interventionista control of prices by the State. When a product is too expensive but not sold, as is the case with the workforce and hence result in unemployment. Of this measure are affected mainly unskilled workers, nesindicalizati and, in general, those whose labor is worth on the market below the minimum wage. A young man who makes 400 roni would never be able to commit to a minimum wage of 500 roni. Mises sees a similarity between the trade unions and the Ku Klux Klan, to the extent that unions resort to aggression. They receive increasing support from government workers with lefurilor, which compel employers to pay minimum wage. (Shows: Carson Tizon)
The text to read:
Minimum Wage Rates, excerpt from Mises ' Human Action '