Elizabeth S. Anderson

"Incarceration in prison or a local jail sets poor people up for exploitation in a forced labor system. New Deal laws once prohibited the use of prison labor except for state institutions. Businesses won the right to use prison labor in 1979. They won an exception from minimum wage laws for prison workers in 1995. This led to the employment of hundreds of thousands of inmates of federal and state prisons for mere pennies per hour. Many are forced to work in unsafe conditions without protective equipment, because workplace health and safety laws do not apply to prison workers."

"In Benthams vision, the poor should be treated like criminals, forced to labor in prison for the private profit of capitalist entrepreneurs. Such a totalitarian idea might seem remote from purportedly enlightened twenty-first-century practices in liberal democracies. Yet both the criminalization of poverty, and the subjection of the criminalized poor to unpaid labor for corporate profit, exist in the United States today."

"We are used to rhetoric that casts “government” as a threat to our liberties. By making it clear that the workplace is a form of government (that the state is not the only government that rules us), we can make clear how the authority that employers have over workers threatens their dignity and autonomy. By naming that government as “private” — that is, as kept private from the workers, as something employers claim is none of the workers’ business — we can make more vivid the fact that workers are laboring under arbitrary, unaccountable dictatorships."

"If free market prices dont give people what they morally deserve, should we try to regulate factor prices so that they do track producers moral deserts? Hayek offered two compelling arguments against this proposal. First, if you fix prices on a backward-looking standard, they will no longer be able to perform their informational function. Producers will produce for what was demanded last quarter, even if it isnt demanded today. This creates enormous waste and generates huge opportunity costs. Wed be much poorer in an economy that worked like this. […] Hayek was right. It might sound like a compelling idea, to make sure that people receive the income they morally deserve. But orienting the economy around this goal, assuming it is achievable at all (and there are principled doubts about that), would doom us to poverty and serfdom. It would abolish capitalism, along with its chief virtues. It isnt worth the draconian costs."