Every once in a while a get a nice letter that really makes my day. Here’s one that I’m delighted to be able to share on this blog:
From: T
Sent: Friday, March 31, 2017 6:17 PM
To: walter block
Subject: Short Note – Thank You!
Dr. Block, I hope all has been well with you. Just a short note to let you know that I was discussing the rationale behind price ceilings with someone today and, when getting to minimum wage, immediately thought of this excerpt from your 2014 article:
“Posit that the “moderate” economists were right. A few people will lose their jobs, but the overwhelming majority would either find or keep their employment slots, at higher compensation rates. Suppose I were to go to the inner city (which contains a disproportionate number of the unskilled), and did the following. I went to one in every 20 people I met, and, at the point of a gun, I relieved them of, oh, $10,000 (40 hours per week time 50 weeks multiplied by $5 per hour). Whereupon I turned to the other 19 out of 20 people and dispersed these stolen funds amongst them. If I did so, I would be promoting the precise effects that the moderate members of the economics profession who are supporters of minimum wage claim will occur. Namely, this law, they contend, they concede, will hurt very few but benefit the many. But how would my excursion into the inner city, and my wealth transfer, be considered by law? Of course, I would be considered a criminal, and very properly so.”
3 years later, that example has still stuck with me, and I thank you for it. There’s not many articles I’ve ever ready by anyone that I can say I love, but this is certainly one of them. Regards, T
Dear T: Thanks. Best regards, Walter
7:21 pm on March 31, 2017
