Milton Friedman's Misconceptions on Gender Pay Gap and Economic Policies

Many individuals mistakenly believe that Milton Friedman argued women should not receive the same pay as men. However, Friedman's actual argument centered on the idea that providing more job opportunities to women could lead to higher demand and increased wages, ultimately equalizing pay. This discussion sheds light on Milton Friedman's stance and evaluates the context and implications of his views.

Understanding Milton Friedman’s Argument

Milton Friedman believed that if women received lower pay, more employers would be willing to hire them due to cost savings. As a result, the demand for women's labor would increase, leading to higher wages and eventual pay parity. This approach hinges on the assumption that labor markets are efficient and that supply and demand principles would act to equalize pay over time. Friedman's view is critiqued here based on a recent personal recount that highlights an instance of gender pay disparity in the workplace.

Personal Experience and Emotions

The author recalls a period when they worked in a candy factory where men received automatic increases in salary, while women did not. Furthermore, women crew managers often lost their jobs during slow seasons, unlike their male counterparts, despite performing harder labor. This experience emphasized the stark realities of gender inequality and underscored the author's ongoing outrage regarding such unfair practices.

The narrative concludes by condemning Milton Friedman as more than just his economic arguments, pointing to his actions and policies in Chile, referring to him as an "evil asshole." This emotional response reflects the deep-seated feelings of those who have experienced or witnessed systemic gender discrimination in the workforce.

Economic Policies and Gender Pay Gap

While Friedman supported a basic income to help low-income individuals, critics argue that policies like minimum wage laws and equal pay regulations could have more immediate and positive impacts on women. Basic income can assist with child support, enabling women to escape dangerous or poor relationships. Equal pay laws, while challenging to enforce, aim to address the structural issues of gender pay disparities. Alternatively, supporters of basic income argue that it can provide a broader safety net for economically vulnerable groups, including women.

However, the author maintains that minimal wage laws have few negative effects in higher-cost areas, backing up his support for such regulations. He notes that the remaining gender pay gap, estimated at 6%, can be attributed to factors like gender discrimination and negotiation skills. Friedman's work often favors minimizing "deadweight losses" in the economy, but the author argues that this approach overlooks the inefficiencies in labor markets, especially in patronage positions, which disproportionately affect women.

Additional Considerations

There is another significant factor to consider when discussing gender pay disparities in the context of incarceration. A substantial number of women in prison (about 30%) have jail time related to prostitution, while another 30% are incarcerated for drug-related offenses. Given Friedman's advocacy for the legal reform of prostitution and the decriminalization of drug use, policymakers could implement strategies like legalizing these activities to reduce the stigmatization and subsequent employment barriers faced by women.

Moreover, the impact of criminal records on employment opportunities is significant. Nearly 30% of Americans have a criminal record, often resulting from minor offenses. Reforming policies to address these records, such as the Swedish model, which enforces penalties on customers rather than prostitutes, could provide real benefits for women facing employment disparities due to past convictions.

Overall, while Milton Friedman's economic theories and arguments have contributed to many important discussions, the author contends that we should critically evaluate his policies and proposals to better address gender pay disparities and create a more equitable and productive society.

Conclusion

It is essential to critically examine Milton Friedman's contributions to economic policy to ensure they are equitable and just. While Friedman's theories have much to offer in understanding economic principles, they should be evaluated alongside practical measures like gender pay regulation and basic income to create the most inclusive and fair society possible. The author suggests that a nuanced approach to economic policy can help mitigate some of the gender disparities observed in the workforce today.