Machinery and Minimum Wage

Chapters 7 & 19

Fallacies abound in the post-modern mind as they did in 19th century England, as is evident when Mr Hazlitt describes the rioting by the stocking workers who were distressed that machines were putting them out of work. Reminds me of the current hallabaloo in northeast Alabama over the closing of sock factories, the owners of which have found cheaper labor abroad.


Here's a pictures of some beautifully handmade socks I received for Christmas. I dont think they put anyone out of a job.

Because these issues involve peoples' livelihoods, they are emotional, highly charged, and politically influenced. It is a shame to hear a worker lament that he has worked for (insert company) and now that he's laid off has *nothing* to show for it. There are many economic factors in that fellow's demise, not the least of which his is own lack of personal planning.

Most humans are slow to admit that we are wrong when it comes to evaluating decisions, so it should come as no surprise that the 19th century workers refused to accept the economics facts of the stocking industry's progress.

The machines did 1) increase production 2) raise the standard of living, and 3)
improved the economic welfare.

Here's a link to a recent article detailing the development of new technology in the restaurant industry, which will improve the delivery of fresh food to the customer. Will it put some workers out of a job? Maybe. But many owners of fast food restaurants understand that the mimum wage laws adversely affect their businesses and actually put more workers out of a job than new machines.

I like what Mr. Hazlitt says in Chapter 19 about minimum wage: that there's nothing wrong with raising wages, but it is just plain wrong for the government to order (force) it. Here's a link to a short testimony detailing the impact of the Federal Minimum Wage Laws on Small Business. There is a plethero of reading about the problems of minimum wage. Google *Yale Brozen.*


The mayor of our small town is a testimony to the economic success associated with hard work, capital investment, and optimistic thinking.

After earning his fortune, he devouted the latter part of his career serving his community.


Not too long ago, I bumped into him shopping at a BJ's (like Costco). He was getting ready to feed the grandchildren :) and looking forward to spending more time with them, after he retires. Here's a link to an article about him. He started as a salesman for a company (Henny Penny) which he later bought.

I'll bet he understands the blessings of machinery and the problems with minimum wage laws.

Reading success stories about Christian businessmen is a fine way to teach economics to youngsters. I might start by requiring the reading of a chapter from The Romance of Industry and Invention by Robert Cochrane, published in 1896 in England. It was awarded to DH's grandfather for perfect attendance in school in 1904!! From the preface - Every fresh labourer in the field adds some link to the chain of progress.



Consider learning about R. G. LeTourneau.



Capture the imagination in the art of economics by reading good books.



But y'all already know that.