Caplan on Labor.

• Author: Bourne, Ryan

Labor Econ Versus the World: Essays on the World's Greatest Market

By Bryan Caplan

258 pp.; independently published, 2022

Bryan Caplan is not reluctant to take controversial positions on public policy issues. The George Mason University economist's recent books have advocated for completely open borders and slashing education spending. He's now at work on a book that purportedly argues the poor are largely to blame for their poverty.

Always guaranteed to be economically well-grounded and thought-provoking, his popular works tear down conventional wisdoms that lead to anti-market thinking. He is unafraid to focus on the thorniest of thorny subjects where misguided economic ideas result in immense social harm. His new book, Labor Econ Versus the World, is true to form, bringing together some of his best blog writing against the "central tenets of our secular religion" of anti-marketism in relation to work, education, and immigration.

Combating misperceptions / The book begins by republishing a 2015 piece outlining eight common misconceptions about labor economics. Is the main reason that workers are richer these days because of government interventions? No, says Caplan; rising worker productivity, coupled with the competition for labor between firms, is the secret sauce to the past century of rising pay. Does keeping out low-skilled migrants prevent poverty or inequality, as commonly believed? Not one bit, he explains. Restrictions on movement keep the poorest in the world poorer by locking out foreigners from opportunities for betterment here, worsening global inequality. Americans, meanwhile, are also made worse off without the specialization that comes from a deeper labor market of more people.

If those two topics do not pique your interest, Caplan outlines six more faulty yet widely held opinions, including the belief that education is a key driver of economic health and the view that government regulation is necessary to curb discrimination. Large parts of the book debunk each claim, with the re-published blogs split into sections addressing labor market policy, immigration, education, and poverty. As a collection, the essays cover a much broader range of topics and ideas that permeate our public discourse.

One of Caplan's strengths is highlighting the flaws of conventional wisdom using analogies. Take unpaid internships. The U.S. Department for Labor outlines rules about their permissibility, which include the requirement that "the...