New Minimum Wage Increase in Nigeria is a Pyrrhic Victory for Organized Labor
By Michael Njoku
> The Nigerian government has passed a new minimum wage law, and the usual suspects are happy because the country "is getting a raise." Economic reality, however, will set in soon enough.
Rothbard:
> Compulsory unemployment is achieved indirectly through minimum wage laws. On the free market, everyone’s wage tends to be set at his discounted marginal value productivity. A minimum wage law means that those whose DMVP is below the legal minimum are prevented from working. The worker was willing to take the job, and the employer to hire him. But the decree of the State prevents this hiring from taking place. (italics in original)
Mises:
> The sacrifice that a man or a group makes in renouncing some short-run gains, lest they endanger the peaceful operation of the apparatus of social cooperation, is merely temporary. It amounts to an abandonment of a small immediate profit for the sake of incomparably greater advantages in the long run.
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