In recent years, conservative criticism of the free market has amplified. In a widely noted column, R. R. Reno of First Things wrote, “The dynamism, velocity, and mobility of capitalism are destabilizing our societies. … Capitalism has a marvelous capacity to innovate, create wealth, and expand prosperity. But it lacks the capacity to give people stability, solidarity, and a sense of belonging. In fact, in its current form, global capitalism seems positively hostile to these fundamental human needs.” In other words, the free economy lacks room for the permanent things, to recall Russell Kirk’s use of T. S. Eliot’s expression. Families and communities need certainty about the strength of familial and neighborly ties as much as—even more than—they need affordable goods and services. Prudent, just employment practices, recognized in public policy, are essential for orienting today’s capitalism to the flourishing of those permanent things. Flexible wages are one important strategy for achieving this goal. Wage flexibility minimizes unemployment by preserving existing jobs during economic downturns and increasing compensation during economic expansion. Thus, wage flexibility should be an unabashed aim of public policy.
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