Three months ago, the CEO of Gravity Payments, a Seattle credit card processing firm, announced that all of the firm’s employees would be paid a minimum of $70,000 a year. Now, the firm has fallen on hard times.
Beyond the usual arguments about incentives and taxes, UBI is a dangerous policy that supercharges the state and threatens to heighten tensions between different groups in society.
The marginalist revolution posed a fundamental problem for economic theory. Mises’s approach not only solved the problem of economizing resources in a division of labor, but provides a robust framework for economic research.
