For decades, U.C. Berkeley professor Robert Reich has made the case for various government interventions in labor markets, such as a higher minimum wage, that invariably raise the rate of long-term unemployment.
The types of policies he supports have been in use in countries such as France (unemployment rate: 11.0 percent), Italy (unemployment rate: 12.0 percent), Portugal (unemployment rate: 17.8 percent), Spain (unemployment rate: 26.8 percent), and Greece (unemployment rate: 26.8 percent).
Those are great models for the U.S., eh professor?
This evening, Reich takes his case for propped-up wages and benefits one step further, implying that compensation cuts, taken to the extreme, are akin to slavery. At least that’s what we think he’s arguing. (It’s sometimes hard to tell.)
Basic economics, indeed. (Alas, Reich doesn’t have a Ph.D. in economics or in any other discipline.)
Ironically, one policy that really could result in lower wages for low-skilled U.S. workers is “comprehensive immigration reform” aka The Gang of Eight bill aka amnesty.
So does Reich oppose amnesty?
But it’s Robert Reich. It’s not supposed to make sense.