Comment: Good piece but you skipped something

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Good piece but you skipped something

Yes falling prices help everyone on net.

But people are not wrong to be concerned about wages. Now their solutions are typically moronic keynesian crap. But the concern is real.

What I see too few austrolibs talking about is the barriers to entry that prevent the labor market from clearing. It's true that things like unemployment insurance insurance and minimum wage cause unemployment. But those things aren't the core problem.

The problem is barriers to market entry for employers. All the regulation we think we're sticking 'to' corporations really has the effect of preventing competition. For a business that employs labor this has a double effect.

Let's take Walmart. When the idiot progressives cheer about sticking it to Walmart with some new regulation, tax, or whatnot, what they have really done is limit the likelihood of new competition, and by now have practically limited any possibility of a small retail outlet ever growing. These laws always have size limits, 'to protect the little mom and pops', but what this really does is protect the big guy from those mom and pops ever growing to compete.

That's all well and good, and most people sort of know this. But there is a more pernicious factor that always gets glossed over.

This market protection large business gets doesn't just limit it's potential competition for customers. It limits it's competition for the product it consumes, labor.

Simply less employers means more labor chasing the same jobs. This lowers wages, and with a welfare state, when the marginal revenue product of labor falls below the floor which is the dole, you will have unemployment.

Also every licensing scheme that protects some elite class of labor, all professional licensure laws, and I mean all, protect the licensed worker at the expense of the unlicensed. Then of course they use the ill gotten gains to perpetuate the licensing scheme. Doctors pretty much started it but now anyone that can get in on the game can. And yes, I don't need the government to 'protect' me from an unlicensed physician.

Professional licensure law is why trash men and ladies who clean toilets get paid poorly, and usually why they are minorities. In a free market nasty jobs would get paid much much better, and cushy jobs would get paid less. Still more, but just enough more to account for specialized training.

The solution to that is simple in principle, rescind all market protection for these corporations and professional unions (AMA) and certainly make make OSHA, FDA, USDA, EEOC, etc all advisory only.

In practice it's likely impossible. That was the point of progressivism. Get the ignorant voters to go along with expanding government power 'to help the consumer'. It was always a ruse. Now it's too late.