Wednesday, May 8, 2013

Milton Friedman on Discrimination

This video ties in well to the link I posted yesterday about the government going after a firm that wanted to hire a British worker.

Here's a classic Milton Friedman clip.  Since the mid-1970s and earlier, we've known government intervention does nothing to help ease economic discrimination.  As we learn in principles of microeconomics, firms that hire less qualified workers (for the same pay) will be punishing themselves, and firms that do not will be more profitable.  Of course, this drives less profitable firms out-of-business and eliminates unequal pay for equal work.

My favorite line: "Anybody who lets irrelevant considerations enter in (to the choice of whom to hire) is going to pay for it".

Enjoy the clip!

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