by DON BOUDREAUX on OCTOBER 11, 2012
in POLITICS, SEEN AND UNSEEN, TRADE
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This administration policy will win votes for the President from some textile workers in the Carolinas. And Mr. Sanchez and his big boss can now bask self-righteously in their imagined humanity.
But will Mr. Sanchez pose for pictures with poor families whose living standards fall because clothing is now made more costly? Will the administration stage press events to highlight the jobs lost because American consumers, obliged to spend more on clothing, will have less to spend on restaurant meals, evenings at the movies, and other goods and services? Will the President post photos on his website of Americans whose jobs are destroyed because foreigners will now have fewer dollars to spend and invest in the U.S.? Will Mr. Obama boast that his re-election strategy includes a policy that, by dulling the creative forces of competition, diminishes America’s economic dynamism and, hence, reduces its economic growth?
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It’s our old friend Bastiat and those unseen unintended consequences!
Nasty old “rule”. “Every time a politician says or does something, look for what’s behind the curtain.”
It’s like when the increased minimum wage law induced AT&T to automate the elevator operators out of their jobs. Some were capable of other work, but many were just let go. My cousin never worked again in her life. True she wasn’t the sharpest blade in the draw, but she was the unseen side of that increase in the minimum wage law.
So don’t tell me that real people are not hurt when the politicians run amok!