Friday, February 24, 2012

On the free market “fine” for improper discrimination

"If an employer has an opening that pays $50,000, and a Christian applicant will result in a $51,000 in benefit to the firm while a Muslim applicant will bring in a $55,000 in benefit to the firm, then to discriminate against the Muslim in favor of the Christian will cost the employer $4,000 in potential profits. No government inspector or watchdog agency is required: by definition, the discrimination is automatically "fined" in the free market [through the lower profits].

Not only does the free market catch discrimination [every time] whenever it occurs, but the amount of the ‘fine’ is also exactly proportional to the severity of the discrimination."

Adapted from The Politically Incorrect Guide to Capitalism by Robert P. Murphy.

The same, of course, applies if the discrimination is based on race, color, gender, sexual orientation, age or any other factor.

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