Economic illiteracy

Barack Obama is often described as being something fresh and welcome, and in some senses he is, but when it comes to economic policy he seems to have learned nothing from the past. Or rather, maybe he has, but he has also learned that populistic and misguided economic policies are more popular among the electorate — and especially among those voting in the Democrat primaries — than a reality based policy.

Thomas Sowell explains why Obama’s intention to strengthen unions and raising minimum wages are not good ideas. Instead they create unemployment, and make those that are already in a tough spot worse off. The problem is relatively simple. A person has a certain level of productivity, and this level determines how much an employer would be willing to pay her. Set a minimum wage above that (or have unions ensure that nobody gets less) and that person will not be employed. It’s all fairly intuitive once one thinks about it.

So, if you desire a fresh face and some fresh unemployment: Vote Obama.


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