Wednesday , April 14 2021
Home / David Henderson /L’Etat, c’est Ro

L’Etat, c’est Ro

Summary:
Louis XIV, pictured above, the king of France from 1643 to 1715, famously said, “L’Etat, c’est Moi.” Thus the title of this post. Ro Khanna, a Democratic member of the House of Representatives, was recently asked what his plan was for the small businesses that might be hurt by the Democrats’ (and some Republicans’) proposal to raise the minimum wage from its current .25 an hour to .00 an hour by 2025. The interviewer asked: I’m wondering what is your plan for smaller businesses? How does this, in your view, affect mom-and-pop businesses who are just struggling to keep their doors open, keep workers on the payroll right now? Khanna answered: Well they shouldn’t be doing it by paying people low wages. We don’t want low-wage businesses. What does Mr. Khanna mean

Topics:
David Henderson considers the following as important: , , , ,

This could be interesting, too:

David Henderson writes Both Amazon and Workers Win

Peter Calcagno writes The Gender Wage Gap: The People vs Congress

Bryan Caplan writes Immigration and Housing: The Meaning of Hsieh-Moretti

Scott Sumner writes No, the unemployment rate is not “meaningless”

L’Etat, c’est Ro

Louis XIV, pictured above, the king of France from 1643 to 1715, famously said, “L’Etat, c’est Moi.” Thus the title of this post.

Ro Khanna, a Democratic member of the House of Representatives, was recently asked what his plan was for the small businesses that might be hurt by the Democrats’ (and some Republicans’) proposal to raise the minimum wage from its current $7.25 an hour to $15.00 an hour by 2025.

The interviewer asked:

I’m wondering what is your plan for smaller businesses? How does this, in your view, affect mom-and-pop businesses who are just struggling to keep their doors open, keep workers on the payroll right now?

Khanna answered:

Well they shouldn’t be doing it by paying people low wages. We don’t want low-wage businesses.

What does Mr. Khanna mean by “we?” Many small businesses want to pay what he would regard as low wages. Many workers would like to work at those low wages if the alternative is higher wage rates but fewer hours, being worked harder, getting fewer benefits, or, in the limit getting zero hours. Many customers would like to buy goods and services produced by businesses paying wages less than $15 an hour.

But none of these people count, in his view.

His “we” means “he” or, more inclusively, people like him who are willing to ignore the desires of those three groups.

Thus the title of this post.

David Henderson
David R. Henderson (born November 21, 1950) is a Canadian-born American economist and author who moved to the United States in 1972 and became a U.S. citizen in 1986, serving on President Ronald Reagan's Council of Economic Advisers from 1982 to 1984.[1] A research fellow at Stanford University's Hoover Institution[2] since 1990, he took a teaching position with the Naval Postgraduate School in Monterey, California in 1984, and is now a full professor of economics.[3]

Leave a Reply

Your email address will not be published. Required fields are marked *