Wage Quote by Henry Hazlitt
““The first thing that happens, for example, when a law is passed that no one shall be paid less than $106 for a forty-hour week is that no one who is not worth $106 a week to an employer will be employed at all. You cannot make a man worth a given amount by making it illegal for anyone to offer him anything less. You merely deprive him of the right to earn the amount that his abilities and situation would permit him to earn, while you deprive the community even of the moderate services that he is capable of rendering. In brief, for a low wage you substitute unemployment. You do harm all around, with no comparable compensation.””
About This Quote
Source Book: Economics in One Lesson by Henry Hazlitt, 1946
Minimum wage laws can price low‑skill workers out of the market, causing unemployment and loss of services.
In simple terms: Setting a wage floor may lead to job loss for low‑skill workers.
Key Takeaway
Consider the trade‑off between wage floors and employment.
Themes
economics
labor markets
policy
unemployment
wage theory
Mood
cautious
analytical
critical
Type
economic
policy
analytical
When to use this quote
- low‑skill hiring
- government regulation
- business budgeting
- social welfare planning
Key Concepts
price floor
labor supply
market equilibrium
opportunity cost
Questions to Reflect On
- What alternatives could protect low‑income workers without causing job loss?
- How do minimum wages affect overall economic welfare?
A Different Perspective
Higher wages may not guarantee jobs; other factors affect employment.
