The Nonvoluntary Price of Labor

Labor is a scarce factor of production. It must be economized. Labor is bought and sold on the market. The price paid for labor is determined by supply and demand. It’s ridiculous to talk about the supply of labor without discussing the price. One may have certain unique skills. This could command a higher price. Another may possess very common skills. This may command a lower price. You must acquire skills in demand to command a high wage.

The wage people decide to work for is a voluntary wage. A third party saying the wage is too low doesn’t help them. Worse, a law could be implemented about the wage. What the individual chose voluntarily is now illegal. They’re involuntarily unemployed due to those that think they are helping. Now, that unemployed individual has to earn money elsewhere. It will more than likely be less productive than their original choice.

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