
660: Clog the Pipes
Milton Friedman on the Economic Impact of Equal Pay Laws
The hosts play archival clips of economist Milton Friedman discussing why "equal pay for equal work" laws can inadvertently harm women and minorities. Friedman argues that if an employer is sexist, the ability to work for a lower wage is a competitive tool for the discriminated group to impose a cost on the employer's prejudice. He suggests that mandated equality removes the financial penalty for discrimination, potentially leading to segregated workforces.
