The Right to Work

And why minimum wage laws are racist

 

Maimonides defined the highest form of charity as helping someone get a job. This, of course, lets them earn a living. 

 

But there are many other psychological benefits which are well known. 

 

Full employment needs to be a high priority for any society where social justice is important.

 

In addition, when there is full or high employment, the employees are in the best position. The law of supply and demand raises salaries and work conditions when there is high employment. That is why hi-tech employees earn very high salaries. There are not enough engineers. That is why they have no need for labor unions. 

 

How to increase employment

 

In order to have high employment, it is essential to have flexible work laws. If it is difficult to let go of employees then it will be more difficult to also hire employees. Employers look for other solutions when work laws are rigid. Examples include:

• Automation—investing in machines, software, etc.

• Outsourcing— that way there is more flexibility in changing the size of the workforce.

 

Think about it. Let’s say you had a business that employed 3 people (remember — the vast majority of businesses are small) and you wanted to hire a 4th. And the best candidate was a woman who was pregnant. And you also know that if your business had a downturn you wouldn’t be able to let go of this new employee. And that would mean you would go from profit to loss—would you take a chance? Or find another solution?

 

Minimum wages hurt the poor in two ways:

 

1. Minimum wage laws are intended to help the weaker segments of the population. But in reality, this often prevents the weakest segments from getting their first job and start the path up the job ladder.

 

2. Minimum wage laws also raise the cost of living which has a huge negative effect on the poor.

 

What should the minimum wage be? Watch the video for the surprising answer.

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Read here why minimum wage laws are racist.

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