Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

How Government Can Provide a Minimum Wage: A Prussian Example

In our opinion, the government shouldn't mandate a minimum wage for the private sector. Instead, the government can provide a minimum wage option. It would do this by hiring people for "public" projects,  and paying them what they were worth in such functions. This competition would effectively produce a minimum wage.

An example  comes from 18th century Prussia, (the forerunner of modern day Germany). It was one of of the poorest countries in Europe, and yet its workers enjoyed one of the highest standards of living for its time, eating meat twice a week. It was a militaristic country because it was so poor. But that's exactly the point!

The Prussian army employed something like 4% of the total population (8% of the male population, perhaps 12% of the adult male population) in PEACETIME. During its numerous wars, the ratio went much higher. Standard Army rations were a pound of beef per man a week. Because of the "government" option, private employers had to pay competitively. (And most of them either had been a member of that 12%, or knew someone that had.) By contrast, the English factory worker, the second best paid in Europe, was lucky to eat meat three times a month. (And this was 100 years or so before Dickens!)

You may dislike this example. If you do, you will understand why we distrust big government.