Milton Friedman really said higher wages make a nation prosperous?

December 18, 2013

Chicago University and Nobel-winning economist Milton Friedman, inspecting fruits of free markets.

Chicago University and Nobel-winning economist Milton Friedman, inspecting fruits of free markets. (Photo found at Crooks and Liars, with quote of Friedman’s explaining the benefits of things like that Earned Income Tax Credit)

In Free to Choose, Milton Friedman wrote:

But when workers get higher wages and better working conditions through the free market, when they get raises by firm competing with one another for the best workers, by workers competing with one another for the best jobs, those higher wages are at nobody’s expense. They can only come from higher productivity, greater capital investment, more widely diffused skills. The whole pie is bigger – there’s more for the worker, but there’s also more for the employer, the investor, the consumer, and even the tax collector.

That’s the way the free market system distributes the fruits of economic progress among all people. That’s the secret of the enormous improvements in the conditions of the working person over the past two centuries.

What would Friedman say about higher productivity and greater capital investment, an increasing pie, when the increases are denied to the worker, and the employer, and the consumer, and the tax collector?  Somehow, I think even Mr. No-government-regulation would cry, “Foul!”

Heck, that’s a good argument for raising the minimum wage, and for fixing income inequality.

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Ashes to ashes, airplanes to spread them, Damon Runyon and silver bells: December 18

December 18, 2013

On December 17, Orville and Wilbur Wright got their heavier-than-air flying contraption to actually fly with motor driving it along.

First flight of the Wright Flyer I, December 1...

First flight of the Wright Flyer I, December 17, 1903, Orville piloting, Wilbur running at wingtip. Photo from Wikipedia

On December 18, Damon Runyon, Jr., got Eddie Rickenbacker to fly over Broadway to scatter the ashes of his father, Damon Runyon.

First Lieutenant E. V. [Eddie] Rickenbacker, 9...

First Lieutenant E. V. [Eddie] Rickenbacker, 94th Aero Squadron, American ace, standing up in his Spad plane. Near Rembercourt, France. Photo from Wikipedia. This photo dates near World War I; Rickenbacker remained a hero for a couple of decades. In 1946, he flew a DC-3 over New York City, and illegally scattered the ashes of raconteur Damon Runyon over his beloved Broadwary.

Not exactly the next day. 43 years and one day apart.  The Wrights first flew in 1903; Runyon died in 1946.

Today in Literature, for December 18:

On this day in 1946 Damon Runyon’s ashes were scattered over Broadway by his son, in a plane flown by Eddie Rickenbacker. Runyon was born in Manhattan, Kansas; he arrived at the bigger apple at the age of thirty, to be a sportswriter and to try out at Mindy’s and the Stork Club and any betting window available his crap-shoot worldview: “All of life is six to five against.” Broadway became his special beat, and in story collections like Guys and Dolls he developed the colorful characters — Harry the Horse, the Lemon Drop Kid, Last Card Louie — and the gangster patois that would swept America throughout the thirties and forties.

A lot of history packed in there.  Runyon’s early reportorial career included a lot of that history — he wrote the lead story for United Press on the inauguration of Franklin Roosevelt, for one example.  Runyon found a uniquely American vein of literary ore on Broadway in New York City, and in the ne’er-do-wells, swells, tarts and reformers who flocked to the City that Never Sleeps to seek fame, or fortune, or swindle that fortune from someone else.

As a reporter and essayist, he smoked a lot.  Throat cancer robbed him of his voice, then his life at 56.

Runyon’s ashes were spread illegally over Broadway, from a DC-3 piloted by Rickenbacker. Runyon would have liked that.

You couldn’t make this stuff up.

Factoids of history:

  • Twenty movies got crafted from Runyon stories, including “The Lemon Drop Kid” — in two versions, 1934 and 1951. Appropriate to the Christmas season, the 1951 version introduced the song, “Silver Bells” composed by Jay Livingston and Ray Evans. (Great explanation of the movie, and song, here.)
  • Runyon got fame first as a sports writer.  He was inducted into the writer’s wing of the Baseball Hall of Fame in 1967.
  • According to Wikipedia, Jerry Lewis and others owe a great debt to Damon Runyon:  “The first ever telethon was hosted by Milton Berle in 1949 to raise funds for the Damon Runyon Cancer Research Foundation.”
  • One might salivate over the varied fare offered in the theaters of Broadway in 1946, Runyon’s final year, “Annie, Get Your Gun” through Shakespeare, and everything in between and on either side
  • Runyon and H. L. Mencken both covered the trial of Bruno Hauptmann, the accused (then convicted) kidnapper of Charles Lindbergh’s baby son
  • Yes, of course, “Guys and Dolls.” Frank Loesser created it, but not of whole cloth, but from the stories of Damon Runyon; it is a masterpiece, perhaps in several realms.  In homage to Runyon, Adam Gopnik wrote:

    Just as Chandler fans must be grateful for Bogart, Runyon fans have to be perpetually happy that the pure idea of Runyon, almost independent of his actual writings, produced the best of all New York musicals: Frank Loesser’s “Guys and Dolls,” which made its début in 1950 and is just now reopening on Broadway in a lavish and energetic new production. But then “Guys and Dolls” is so good that it can triumph over amateur players and high-school longueurs and could probably be a hit put on by a company of trained dolphins in checked suits with a chorus of girl penguins.

    Your author here, Dear Reader, was once one of those trained dolphins. It was magnificent.

“Silver Bells,” from “The Lemon Drop Kid,” with William Frawley, Virginia Maxwell and Bob Hope (1951 version):

More:

A view of New York City in 1946:

Thomas Hart Benton (1889–1975)

Thomas Hart Benton (1889–1975) “The Artist’s Show, Washington Square,” painted in 1946

Times Square, showing part of Broadway, in November 1946, from the magnificent archives of Life Magazine:

Brownout Time Square.November 1946.© Time Inc.Herbert Gehr - See more at: http://kcmeesha.com/2011/11/29/old-photos-times-square-through-the-years/#sthash.ru9W0F9h.dpuf

Brownout Time Square.November 1946.© Time Inc.Herbert Gehr – See more at: http://kcmeesha.com/2011/11/29/old-photos-times-square-through-the-years/#sthash.ru9W0F9h.dpuf


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