by George Leef
Apparently, entrepreneur Dan Price is going to learn a lesson the hard way. Swept up in social activism, he decided to pay his workers significantly more, ensuring that no one worked for less than $70K per year. But, as Tyler Durden points out, his kind and generous move is destroying his company.
Bastiat noted that good economists contemplate not just the immediate consequences of an action but also the unseen future ones. Some American businessmen, despite their market successes, are poor economists.
Some universities, incidentally, are doing the same thing — paying workers more than is necessary to obtain their services just out of a sense of “compassion.” At least Mr. Price was tossing away his own money.