On this Labor Day, let us ask who is truly Pro Labor. Is it the U.S. Democrat Party? Is it the political party in every other country that pursues an agenda of democratic socialism? I contend that only the libertarian is a friend to labor, that among all the political programs and their advocates, there is indeed no truer friend to the laborer than the libertarian.
The libertarian steadfastly and unequivocally opposes minimum wage laws- and this makes him a friend- not an enemy- of labor. Such laws act to fix the price of a commodity (labor) at an above market level, causing a decrease in the demand for that commodity. In other words, minimum wage laws create higher wages for some workers at the expense of fewer hours or job cuts for less fortunate workers.
To put things in perspective imagine if government passed such a law against another commodity. Imagine a farmer sells wheat and another sells potatoes. The government decides to help the wheat farmer make more money by setting a "minimum price" for wheat, because "he deserves a "fair price" for his wheat. The wheat farmer is now legally forbidden to sell his wheat for less than x amount.
Can you imagine what this would do to his sales? They would naturally plummet, and the potato farmer would sell more potatoes at the expense of the wheat farmer. The wheat farmer himself would have his freedom of trade restricted. Even if he wanted to sell for less so that he could compete with potatoes, he'd no longer be allowed to. Can we call such a policy Pro Wheat Farmer? Absolutely not!
Yet this is exactly what has happened with another good- labor. Our government regularly increases the "minimum price" for labor, which as you can see from the illustration is a blatantly anti-labor policy, destructive to the interests of the laborer, and then it is actually passed off as "Pro Labor!" Libertarians know better.
And can anyone call the bipartisan TARP bailout of last fall Pro Labor? Or the AIG bailout? Can anyone actually agree that it is Pro Labor to reward corrupt, over paid, corporate executives for running their companies into the ground, destroying laborers' jobs, and ruining laborers' savings by wrecking the stock values of the companies in which they invest their hard-earned money?
And to pay for it with money taxed from laborers' paychecks and printed by the Federal Reserve at the expense of devaluing the money that laborers work for and skyrocketing the prices of the goods that laborers need to buy in order to live!? And it was a Democrat-controlled Congress that passed this stinking piece of anti-labor legislation!
Can we say that the American laborer has any friend left, but among libertarians? As I have endeavored to show here, the answer is that we can not. The American laborer is friendless and beset on all sides by enemies. His one and only friend is the American libertarian.
Happy Labor Day.