ABSTRACT
Like all other contracts, wages should be left to the fair and free competition of the market, and should never be controlled by the interference of the legislature. In August 1996, Congress passed the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) in order to "end the dependence of needy parents on government benefits by promoting job preparedness, work, and marriage." Conservatives are profoundly skeptical of social welfare programs, arguing that efforts at redistributing income are bound to produce a drag on economic performance. Liberals are receptive to reforms that reduce costs and improve efficiency, but are realistic in our evaluation of income distribution and aware of the limitations that poorly functioning markets impose upon economic opportunity. Theories of competitive product markets and resource markets presume certain ideal conditions that dodge practical complications. Poverty and inequality are further cultivated by circumstances that are beyond the control of individual choices and relative efforts in the labor market.
