On the Price of Labor and Unemployment

Abstract

Strange though it may be, precisely today—at a time when the Russian economy is making the transition to the market—numerous zealots concerned with the people's welfare are once again foisting on public opinion the obviously stagnant idea of ‘the social protection of the working people.’ Before our very eyes, labor, as in the good old days, is once again becoming the object of the post-totalitarian state's social guardianship. We need only recall the notorious wage indexing, the salary supplements for everything possible including long service in the government apparatus, the bread subsidies, and the like. All these measures are portrayed as little less than a fatherly concern for the people. And when do these measures occur? In the middle of implementing market reforms! It is probably no secret to anyone that the lives of those who are so zealously guarded is nonetheless not getting better. In no way are potential raises in pensions, wages, and grants keeping pace with the high cost of living.